I. OTHER LIABILITIES
I1 DEFERRED TAXATION
I1.1

Accounting policy

Deferred taxation is recognised for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxation is not recognised for the following temporary differences:

  • The initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit
  • Goodwill that arises on initial recognition in a business combination, and
  • Differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future.

A deferred taxation asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised. Deferred taxation assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related taxation benefit will be realised.

Deferred taxation assets and liabilities are measured at the taxation rates that are expected to apply to the period when the asset is realised or the liability is settled, based on taxation rates and taxation laws that have been enacted or substantively enacted by the reporting date.

The effect of any changes in taxation rates on deferred taxation is recognised in profit or loss for the period, except to the extent that it relates to items previously charged or credited directly to other comprehensive income or equity.

Deferred taxation assets and liabilities are offset if there is a legally enforceable right to offset current taxation liabilities and assets, and they relate to income taxes levied by the same taxation authority on the same taxable entity.

I1.2

Key assumptions and estimations

Deferred tax

The group is subject to income tax in numerous jurisdictions. Significant judgement is required in determining the provision for tax as there are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.

A deferred taxation asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised. Deferred taxation assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related taxation benefit will be realised.

The group recognises liabilities for anticipated tax obligations based on estimates of the taxes that are likely to become due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the group has not rebutted this presumption.

I1.3

Carrying value

  GROUP     COMPANY  
  30 June 2019 
R000 
30 June 2018 
R000 
    30 June 2019 
R000 
30 June 2018 
R000 
 
Arising on:              
Wear and tear claims on investment property, building appurtenances and tenant installations 165 683  164 149      165 683  163 954   
Taxation loss brought forward (78 122) (78 122)     (78 122) (78 122)  
Fair value of investment property – Gruppo –  76 165      –  –   
Fair value adjustment to convertible loans – Gruppo –  28 017      –  –   
Rent and other receivables – Gruppo –  (12 207)     –  –   
Total deferred taxation 87 561  178 002      87 561  85 832   
I1.4

Movement reconciliation

  GROUP     COMPANY  
  30 June 2019 
R000 
30 June 2018 
R000 
    30 June 2019 
R000 
30 June 2018 
R000 
 
Balance at the beginning of the year 178 002  139 599      85 832  73 993   
Currency translation reserve adjustment 3 014  3 299      –  –   
Movement through profit or loss (93 455) 35 104      1 730  11 839   
   Building appurtenances and tenant installations 10 440  12 078      9 895  12 085   
   Reversal of wear and tear allowances on asset sales (8 510) (264)     (8 510) (264)  
   Fair value of investment property – Gruppo (13 252) (51)     –  –   
   Prior year deferred taxation adjustment 345  2 927      345  18   
   Unutilised losses carried forward (52 142) –      –  –   
   Fair value adjustment on convertible loans – Gruppo (23 323) 23 706      –  –   
   Rent and other receivables – Gruppo (7 013) (3 292)     –  –   
Balance at the end of the year 87 561  178 002      87 562  85 832   
I1.5

Tax rates used

  GROUP     COMPANY  
  30 June 2019
R000
30 June 2018
R000
    30 June 2019
R000
30 June 2018
R000
 
South Africa – temporary differences (%) 28 28     28 28  
Nigeria – temporary differences (%) 30 30      
Nigeria – investment property (%) 10 10      
I2 TRADE AND OTHER PAYABLES
I2.1

Accounting policy

Trade and other payables are measured at amortised cost. Short-term payables are measured at the original invoice amount as the effect of discounting is immaterial.

I2.2

Carrying value

  GROUP     COMPANY  
  30 June 2019
R000
30 June 2018
R000
    30 June 2019
R000
30 June 2018
R000
 
Trade payables and accrued expenses 83 421 154 636     84 561 65 278  
Tenant deposits 80 218 86 647     80 218 72 511  
Gift cards 17 885 15 425     17 885 15 425  
Interest payable 67 667 44 980     58 042 37 749  
Rent received in advance 64 829 86 944     64 829 85 281  
Value added tax (VAT) 18 601 26 201     18 601 21 878  
Municipal provisions 95 645 39 561     95 645 106 861  
Employee provisions 22 950 28 064     22 950 26 770  
Other payables 17 925 3 632     4 960 3 369  
Total trade and other payables 469 141 486 090     447 691 435 122