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Telkom Integrated Report 2017
8 Capital additions and disposals
2017
Rm
2016
Rm
Property, plant and equipment
Additions
7 539
5 263
Disposals
(23)
(231)
7 516
5 032
Intangible assets
Additions
1 069
726
Disposals
(27)
-
1 042
726
The additions are largely due to the deployment of fibre and other technologies to support the growing data services business, internet
capacity growth, links to the mobile cellular operators and access line deployment in selected high growth commercial and business
areas.
An estimated amount of R48 million (FY2016: R101 million) included in inventories will be used forTelkom’s network expansion,
R48 million of which was purchased in the current financial year (FY2016: R83 million).
Finance charges of R130 million (FY2016: R103 million) were capitalised to property, plant and equipment and intangible assets in the
current financial year.
9 Employee benefits
2017
Rm
2016
Rm
635
846
TelkomPension Fund asset
23
114
Post-retirement medical aid net plan asset
612
732
The assets recognised are determined in accordance with IAS 19. TheTelkomPension Fund assets decreased due to a S15E transfer in
terms of the Pension Act to theTelkomRetirement Fund of approximately R96 million.
The decrease in the post-retirement medical aid net plan asset is due to the decrease in the fair value of the annuity policy.
10 Other investments and financial assets
2017
Rm
2016
Rm
Non-current other investments
Other investments
40
2 318
Cell captive preference shares
–
2 235
FutureMakers
11
13
Equity investment in Number Portability Company
5
4
BCX group interests in associates and joint ventures
24
66
Other financial assets
2 514
1 754
Current other financial assets consist of:
126
1 754
> Repurchase agreements
–
1 634
> Derivative instruments
78
101
Forward exchange contracts
54
20
Firm commitments
24
43
Cross currency swaps
-
38
> Asset finance receivables
48
19
The decrease in other financial assets is primarily due to the disposal of the repurchase agreement.
Current other investments consist of:
2 388
–
> Cell captive preference shares
2 388
–
The cell captive preference shares were reclassified from non-current assets to current assets in the current
financial year as it is highly probable that it will be liquidated in the short term.