118 / 166
2017
R’000
2016
R’000
26.
POST-RETIREMENT OBLIGATIONS
(continued)
Unfunded defined benefit retirement plans
(continued)
Movement in the liability for unfunded defined benefit early retirement plan
(continued)
Balance at beginning of year
13 884
177 041
Benefits paid
–
(3 657)
Current service costs
–
3 335
Interest expense
144
1 067
Actuarial adjustments recognised in other comprehensive income
(633)
3 454
Settlement
(1 395)
(199 705)
Exchange rate adjustments on foreign plans
(1 381)
32 349
Balance at end of year
10 619
13 884
%
%
Key actuarial assumptions
Discount rate
1,5
0,5 – 1,2
Inflation rate
1,5
1,75
Salary increase rate
2,55
1,5 – 2,75
Date of valuation
June 30 2017
June 30 2016
27.
PUTTABLE NON-CONTROLLING INTEREST LIABILITIES
The acquisition of Guzmán Gastronomía and Cuttings, and Quartiglia Food Service SPA during the year resulted in a put option being
agreed with the non-controlling shareholders. The put options entitle the non-controlling shareholders to sell their holdings in the
subsidiaries to the group at contracted dates and amounts.
The group has the following put options:
■
■
The non-controlling shareholders in Distrubuzione Alimentari Convivenze SPA (DAC) have the option to put their 40% interest in DAC to
the group, using a market valuation formula on or about September 30 2017.
■
■
The non-controlling shareholders in Guzmán have the option to put their 10% interest in Guzmán to the group, using a market valuation
formula on or about June 30 2021.
■
■
The non-controlling shareholders in Caterfood have the option to put their 12% interest in Caterfood to the group, using a market
valuation formula on or about September 30 2017.
■
■
The non-controlling shareholders in Quartiglia Food Service Spa have the option to put their 40% interest in Quartiglia Food Service Spa
to the group, using a market valuation formula on or about September 30 2019.
2017
R’000
2016
R’000
The affect of granting these put options on the group’s results can be summarised as follows:
Balance at beginning of year
1 168 921
913 638
Arising on the granting of put options to non-controlling interests during the year
119 832
44 700
Payments made to non-controlling interests during the year
(39 927)
–
Remeasurement of puttable option during the year
48 076
–
Unwinding of present value discount recognised in the statement of profit or loss
21 167
23 085
Exchange rate adjustments
(122 873)
187 498
1 195 196
1 168 921
Long-term portion
118 028
1 168 921
Short-term portion
1 077 168
–
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
114