| Notes to the consolidated financial statements | Note 29 |
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| |
|
2016
R’000 |
|
|
2015
R’000 |
|
| 29. |
PROVISIONS |
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|
|
|
|
| |
Long-term portion |
397 970 |
|
|
340 649 |
|
| |
Short-term portion |
358 319 |
|
|
267 094 |
|
| |
|
756 289 |
|
|
607 743 |
|
| |
|
Onerous
contracts
R’000 |
Dismantling
and site
restoration
R’000 |
Customer
loyalty
programme
R’000 |
Other
R’000 |
|
|
Total
R’000 |
|
| |
Balance at July 1 2014 |
42 760 |
324 039 |
98 599 |
44 815 |
|
|
510 213 |
|
| |
Created |
22 847 |
69 909 |
35 846 |
39 764 |
|
|
168 366 |
|
| |
Utilised |
259 |
(58 329) |
(28 845) |
(13 940) |
|
|
(100 855) |
|
| |
Net acquisition of businesses |
– |
2 704 |
– |
25 238 |
|
|
27 942 |
|
| |
Exchange rate adjustments |
1 908 |
5 692 |
(5 931) |
408 |
|
|
2 077 |
|
| |
Balance at June 30 2015 |
67 774 |
344 015 |
99 669 |
96 285 |
|
|
607 743 |
|
| |
Created |
806 |
166 865 |
25 031 |
53 173 |
|
|
245 875 |
|
| |
Utilised |
(31 649) |
(65 400) |
(18 832) |
(60 039) |
|
|
(175 920) |
|
| |
Net acquisition of businesses |
– |
2 149 |
(178) |
(1 533) |
|
|
438 |
|
| |
Exchange rate adjustments |
7 338 |
27 912 |
17 159 |
17 136 |
|
|
69 545 |
|
| |
Effect of discounting |
1 383 |
7 225 |
– |
– |
|
|
8 608 |
|
| |
Balance at June 30 2016 |
45 652 |
482 766 |
122 849 |
105 022 |
|
|
756 289 |
|
| |
Onerous contracts
Onerous contracts are identified through regular reviews of the terms and conditions of contracts as well as on the acquisition of businesses. A provision for onerous contracts is calculated as the present value of the portion which management deems to be onerous in light of the current market conditions, discounted using market-related rates. An annual expense is recognised over the life of the contracts.
Provision for cost of dismantling and site restoration
A provision is raised for the estimated costs of dismantling and removing items, and restoring the property on which they are located. The change in the liability arising as a result of unwinding the discount is recognised in the statement of profit or loss as a finance charge. The dismantling of the plant and recommissioning of buildings is expected to coincide with the end of the useful life of the plant and lease periods.
Customer loyalty programme
This is a customer loyalty programme introduced by certain operations within the group, whereby customers can earn points for redemption in the form of gift certificates and products of the operations. The provision is calculated based on the points outstanding at year-end.
Other
Other consists of various individually insignificant provisions.
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| Notes to the consolidated financial statements | Note 29 |
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