18.2 DEFERRED TAX (LIABILITY)/ASSET
GROUP
COMPANY
2020
2019
2020
2019
R’m
R’m
R’m
R’m
The main temporary differences:
Property, plant and equipment (319) (252) - -
Inventory provisions 6 4 - -
Trade and other receivables 23 22 - -
Other provisions 34 18 - -
AgriRewards (33) (71) - -
Share incentive ( 1) (2) - -
Right-of-use asset and lease liability adjustment 3 - - - -
Operational losses carried forward 1 17 12 - -
CGT losses carried forward 13 12 2 -
Investment in joint ventures 2 (29) (29) - -
Deferred taxation on the valuation of financial assets - - (111) (108)
Deferred tax (liability)/asset (289) (286) (109) (108)
1
The operational losses carried forward relate mainly to Tradevantage’s assessed losses. The deferred tax asset will be recognised
in full due to probability of the asset being utilised through future profits. No time limit on utilisations exist for
recognition. Tradevantage realised a loss during the year under review. However, the forecast and budget of Tradevantage
reflect a profit for the foreseeable future. The situation will be monitored and if profits do not realise as expected in the
following years, the asset will be reconsidered.
2
Consists of deferred tax on the Hinterland investment and provisions carried over to Hinterland as part of the merger
transaction.
3
Amounts are less than R0,5 million.
The deferred tax asset and liability are disclosed in the statement of financial position as follows:
GROUP
COMPANY
2020
2019
2020
2019
R’m
R’m
R’m
R’m
Deferred tax asset 30 24 2 -
at normal tax rate 17 12 - -
at capital gains tax rate 13 12 2 -
Deferred tax liability (319) (310) (111) (108)
at normal tax rate (204) (261) - -
at capital gains tax rate (115) (49) (111) (108)
Deferred tax (liability)/asset (289) (286) (109) (108)
GROUP
COMPANY
2020
2019
2020
2019
R’m
R’m
R’m
R’m
Reconciliation of deferred tax balance:
Balance at the beginning of the year (286) (221) (108) (108)
Temporary differences - movements during the year 33 (41) (1) -
Previous year adjustment to deferred tax (24) (24) - -
Current year subsidiary acquisitions * (36) - - -
Balance at the end of the year (313) (286) (109) (108)
* This relates to the acquisition of KLK Landbou, Grainovation and Falcon during the current year, refer to note 6.2.
53
SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 Senwesbel Limited Reg no: 1996/017629/06