| 24 Non-distributable reserves |
|
Group |
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2017
Rm |
|
|
2016
Rm |
|
|
2017
Rm |
|
|
2016
Rm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 376 |
|
|
1 507 |
|
|
753 |
|
|
795 |
|
| Opening balance |
|
1 507 |
|
|
1 507 |
|
|
795 |
|
|
786 |
|
| Movement during the year |
|
(131) |
|
|
– |
|
|
(42) |
|
|
9 |
|
| Foreign currency translation reserve |
|
(61) |
|
|
(9) |
|
|
– |
|
|
– |
|
| Increase in treasury shares for Telkom company share plan. |
|
(205) |
|
|
– |
|
|
(205) |
|
|
– |
|
| Vesting of grant 1 of Telkom Share Plan |
|
11 |
|
|
– |
|
|
11 |
|
|
– |
|
| Purchase of Telkom shares by subsidiaries for subsidiaries employee share scheme |
|
(28) |
|
|
– |
|
|
– |
|
|
– |
|
| Revaluation of the cell captive reserve |
|
152 |
|
|
9 |
|
|
152 |
|
|
9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| The balance comprises: |
|
1 376 |
|
|
1 507 |
|
|
753 |
|
|
795 |
|
| Cell captive reserve |
|
2 443 |
|
|
2 291 |
|
|
1 722 |
|
|
1 570 |
|
| Foreign currency translation reserve |
|
(70) |
|
|
(9) |
|
|
– |
|
|
– |
|
| Shares held by subsidiaries and in escrow |
|
(997) |
|
|
(775) |
|
|
(969) |
|
|
(775) |
|
The group has a cell captive preference share investment to fund Telkom's post-retirement medical aid liability.
The fair value gains from the cell captive are recognised in profit or loss. The fair value gains are transferred to the non-distributable
reserves until the date that the investment and the corresponding fair value gains are realised. On this date the fair value gains are
transferred back to retained earnings.
The reserve also represents amounts paid by Telkom to subsidiary, Rossal No 65 Proprietary Limited, for the acquisition of Telkom's shares
to be utilised in terms of the Telkom Share Plan.
Fair value of ordinary shares in Telkom are held as follows:
| |
|
Group |
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number of
shares |
|
|
Rm |
|
|
Number of
shares |
|
|
Rm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Treasury shares in escrow |
|
12 612 717 |
|
|
946 |
|
|
13 464 298 |
|
|
775 |
|
| Rossal No 65 Proprietary Limited |
|
4 630 125 |
|
|
347 |
|
|
1 875 239 |
|
|
108 |
|
| Total |
|
17 242 842 |
|
|
1 293 |
|
|
15 339 537 |
|
|
883 |
|
All shares will be allocated to employees as part of the share plan. During the year subsidiaries purchased 398 975 shares for R28 million.