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 future 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 judgements and estimations
 

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.

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     
  June 2020 
R'000 		   June 2019 
R'000 		   June 2020 
R'000 		   June 2019 
R'000 		  
Arising on: 
Wear and tear claims on investment property and property, plant and equipment  173 320    165 683    173 320    165 683   
Taxation loss brought forward  (78 122)   (78 122)   (78 122)   (78 122)  
Total deferred taxation  95 198    87 561    95 198    87 561   

I1.4 Movement reconciliation
Group    Company   
  June 2020 
R'000 		   June 2019 
R'000 		   June 2020 
R'000 		   June 2019 
R'000 		  
  Balance at the beginning of the year  87 561    178 002    87 561    85 832   
  Currency translation reserve adjustment  –    3 014    –    –   
  Movement through profit or loss  7 637    (93 455)   7 637    1 729   
   Building appurtenances and tenant installations  7 637    10 440    7 637    9 894   
   Reversal of wear and tear allowances on asset sales  –    (8 510)   –    (8 510)  
   Fair value of investment property – Gruppo  –    (13 252)   –    –   
   Prior year deferred taxation adjustment  –    345    –    345   
   Unutilised losses carried forward  –    (52 142)   –    –   
   Fair value adjustment on convertible loans – Gruppo  –    (23 323)   –    –   
   Rent and other receivables – Gruppo  –    (7 013)   –    –   
  Balance at the end of the year  95 198    87 561    95 198    87 561   
 I1.5 Tax rates used                 
  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
 
Trade payables and accrued expenses 132 342   83 421   122 042   84 561  
Tenant deposits 84 934   80 218   84 934   80 218  
Gift cards 34 594   17 885   34 594   17 885  
Interest payable 39 485   67 667   34 993   58 042  
Rent received in advance 57 338   64 829   57 338   64 829  
Value added tax (VAT) 8 030   18 601   8 030   18 601  
Municipal provisions 111 876   95 645   111 876   95 645  
Employee provisions 14 243   22 950   14 243   22 950  
Other payables 11 868   17 925   11 255   4 960  
Total trade and other payables 494 710   469 141   479 305   447 691  

I3 DIVIDEND PAYABLE
I3.1 Profile
 

Dividends declared but not paid are recorded at their settlement value.
I3.2 Carrying value
 
Dividends for the 6 months ended 31 December 2019(declared on 27 February 2020) 788 347   –   790 041   –  
Total dividend payable 788 347   –   790 041   –  

The board of directors has resolved that it would be prudent to defer its decision on the payment of the interim dividend and the declaration of the final dividend for the year ended 30 June 2020 until December 2020, or an earlier date to be determined by the Board. See note O2.1.