| 20 Other financial assets and liabilities |
|
Group |
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Company |
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| |
|
2017
Rm |
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|
2016
Rm |
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2017
Rm |
|
|
2016
Rm |
|
|
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|
|
|
|
|
|
|
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|
| Non-current other financial assets consist of: |
|
60 |
|
|
55 |
|
|
– |
|
|
– |
|
| Total other financial assets |
|
186 |
|
|
1 809 |
|
|
78 |
|
|
1 735 |
|
| - Repurchase agreements |
|
– |
|
|
1 634 |
|
|
– |
|
|
1 634 |
|
| - Derivative instruments |
|
78 |
|
|
101 |
|
|
78 |
|
|
101 |
|
| Forward exchange contracts |
|
54 |
|
|
20 |
|
|
54 |
|
|
20 |
|
| Firm commitments |
|
24 |
|
|
43 |
|
|
24 |
|
|
43 |
|
| Cross-currency swaps |
|
– |
|
|
38 |
|
|
– |
|
|
38 |
|
| - Asset finance receivables |
|
73 |
|
|
39 |
|
|
– |
|
|
– |
|
| - Shanike Investments - Nanoteq Proprietary Limited |
|
– |
|
|
3 |
|
|
– |
|
|
– |
|
| - NGA loans |
|
27 |
|
|
32 |
|
|
– |
|
|
– |
|
| - APPZONE loans |
|
8 |
|
|
– |
|
|
– |
|
|
– |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Current portion of other financial assets |
|
126 |
|
|
1 754 |
|
|
78 |
|
|
1 735 |
|
| - Repurchase agreements |
|
– |
|
|
1 634 |
|
|
– |
|
|
1 634 |
|
| - Derivative instruments |
|
78 |
|
|
101 |
|
|
78 |
|
|
101 |
|
| Forward exchange contracts |
|
54 |
|
|
20 |
|
|
54 |
|
|
20 |
|
| Firm commitments |
|
24 |
|
|
43 |
|
|
24 |
|
|
43 |
|
| Cross-currency swaps |
|
– |
|
|
38 |
|
|
– |
|
|
38 |
|
| Asset finance receivables |
|
48 |
|
|
19 |
|
|
– |
|
|
– |
|
| Non-current other financial liabilities consist of: |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
| At fair value through profit or loss |
|
|
|
|
|
|
|
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|
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| Total other financial liabilities |
|
(440) |
|
|
(455) |
|
|
(440) |
|
|
(442) |
|
| - Derivative instruments |
|
(440) |
|
|
(455) |
|
|
(440) |
|
|
(442) |
|
| Forward exchange contracts |
|
(189) |
|
|
(155) |
|
|
(189) |
|
|
(142) |
|
| Firm commitments |
|
(229) |
|
|
(293) |
|
|
(229) |
|
|
(293) |
|
| Interest rate swaps |
|
(22) |
|
|
(7) |
|
|
(22) |
|
|
(7) |
|
| Less: Current portion of other financial liabilities |
|
(440) |
|
|
(455) |
|
|
(440) |
|
|
(442) |
|
| - Derivative instruments |
|
(440) |
|
|
(455) |
|
|
(440) |
|
|
(442) |
|
| Forward exchange contracts |
|
(189) |
|
|
(155) |
|
|
(189) |
|
|
(142) |
|
| Firm commitments |
|
(229) |
|
|
(293) |
|
|
(229) |
|
|
(293) |
|
| Interest rate swaps |
|
(22) |
|
|
(7) |
|
|
(22) |
|
|
(7) |
|
Repurchase agreements
The group manages a portfolio of repurchase agreements, with a view to generate additional investment income on the favourable interest rates and security provided on these instruments. They are short term, usually seven days and are held to maturity.
Derivatives not designated as hedging instruments
The group uses forward exchange contracts to economically hedge its foreign exchange rate transaction exposures.
Derivative instruments are measured at fair value through profit or loss.
Fair value hedge
The foreign exchange forward contracts designated as fair value hedges are being used to hedge the exposure to changes attributable to
movement in the spot exchange rate of its firm commitments.
A decrease in fair value of the forward exchange contracts designated as fair value hedges of R88 million (2016: R288 million) has been
recognised in finance charges and fair value movement and offset with a similar loss on the hedged items (property, plant and equipment
and inventory). The ineffectiveness movement recognised in the current financial year was immaterial.