SENWES ANNUAL FINANCIAL STATEMENTS 2022
2.8 Inventory held to satisfy firm sales Inventory held to satisfy firm sales represent inventory purchases on behalf of third parties in respect of agricultural produce received from producers , which are payable by the third party on delivery of such agricultural produce to them . This includes sales in terms of sales contracts secured by inventory . Refer to note 12 for measurement .
2.9 Taxes Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities . The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted , at the reporting date in the countries where the group operates and generates taxable income .
Current income tax shall be recognised outside profit and loss if the tax relates to items , in the same or different period , outside profit or loss . Therefore if items are recognised in other comprehensive income the current tax should be recognised in other comprehensive income and if items are recognised directly in equity the current tax should be recognised directly in equity .
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establish provisions where appropriate .
Tax receivables and tax payables are offset if a legally enforceable right exists to set off the recognised amounts and if there is an intention to settle on a net basis .
Deferred tax Provision is made for deferred tax using the liability method on temporary differences arising between the tax base of assets and liabilities and their carrying values for purposes of financial reporting , at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled , applying the tax rate enacted at the reporting date . The liability for deferred tax or deferred tax assets is adjusted for any changes in the income tax rate .
Deferred tax assets arising from all deductible temporary differences are limited to the extent that probable future taxable income will be available against which the temporary differences can be charged .
The carrying amounts of deferred income tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised . Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable income will allow the deferred tax asset to be recovered .
Deferred tax shall be recognised outside profit and loss if the tax relates to items , in the same or different period , outside profit or loss . Therefore if items are recognised in other comprehensive income the deferred tax should be recognised in other comprehensive income and if items are recognised directly in equity the deferred tax should be recognised directly in equity .
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority .
Value added tax Revenue , expenses and assets are recognised net of the amount of value added tax except :
• Where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority , in which case the value added tax is recognised as part of the expense item as applicable ; and
• Receivables and payables that are stated with the amount of value added tax included .
The net amount of value added tax recoverable from , or payable to the taxation authority is included as part of receivables or payables in the statement of financial position .
2.10 Post – employment benefits
2.10.1 Retirement liability The retirement liability comprises a defined contribution fund registered in terms of the Pension Funds Act , 1956 , and the assets are administered separately by trustees . Funding is in terms of conditions of employment by means of contributions by the company , participating subsidiaries , as well as employees . Contributions are recognised in profit or loss in the period in which the employees rendered the related services . As the funds are defined contribution funds , any underfunding that may occur when the value of the assets decrease below that of the contributions , is absorbed by the employees by means of decreased benefits . The group therefore has no additional exposure in respect of the retirement liability .
78
Reimagine Agriculture