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2013
Annual Report
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Deferred tax assets and unused tax credits in respect of loss carryforwards are only capitalised when their
future realisation is reasonably assured.
Similarly, income tax credits and deductions are recognised in the year they originate, with a credit to
valuations adjustments under equity, where they are applied to profit or loss in line with the depreciation of
the assets that gave rise to the deductions.
Tax credits in respect of all items, including loss carryforwards, are recognised at the tax rate prevailing at the
end of the year they are generated, adjusted, if modified, at the tax rate prevailing at the reporting date.
3.11.
Share-based payment transactions
Services received in cash-settled share-based payment transactions which require compliance with a certain
period of tenure, are recognised in the income statement during that period. These services are initially
measured at fair value of the liability at the date the requirements for their recognition are met.
The liability is subsequently measured until settlement at its fair value at each year-end, and any changes in
value taking place during the year are taken to profit or loss. Therefore, changes in value that entail an
increase in the provision are recognised with a charge to personnel expenses, whereas the amount of the
revaluation adjustments is recorded under finance costs.
3.12.
Provisions and contingent liabilities
Provisions for environmental rehabilitation, restructuring costs and litigation are recognised, where applicable,
when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable
that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of
the amount of the obligation.
Provisions maturing in over one year are measured at the present value of the estimated expenditure required
to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of
money. Adjustments made to update the provision are recognised as a finance cost when accrued.
Provisions expiring in one year or less, the financial effect of which is immaterial, are not discounted.
3.13.
Revenue recognition
Revenue is recognised at the fair value of the consideration receivable and reflects the amounts to be
collected for goods handed over and services rendered in the ordinary course of the Company’s activities, less
returns, discounts and value added tax.
The Company recognises revenues on an accruals basis or as the ownership of the goods or services sold is
effectively transferred, when the amount can be measured reliably, it is probable that the future economic
benefits will flow to the Company and the specific terms are met for each type of revenue.
