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Summary of material accounting policies
Non-distributable reserves
Non-distributable reserves include reserves that have been grouped together as accounting reserves, which have arisen as a result of the specific requirements in the accounting standards.
Non-distributable reserves include the following:
- Translation reserve: This reserve comprises foreign currency translation differences arising from the translation of annual financial statements of the Group's foreign entities into South African rand.
- Treasury shares: This reserve represents the treasury shares as well as the amounts paid by Telkom to its subsidiary, Rossal No 65 (Pty) Ltd, for the acquisition of Telkom's shares to be utilised in terms of the Telkom Group employee share scheme.
- Shares repurchased for the purpose of the Telkom Group employee share scheme.
Treasury shares
Where the Group acquires shares for the Telkom Group employee share scheme, these shares are measured at acquisition cost and disclosed as a reduction of equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments. Such shares are not remeasured for changes in fair value. Any difference between the historical par value of the shares acquired and the consideration transferred for the acquisition of the shares is accounted for as an adjustment to retained earnings.
Where the Group chooses or is required to buy equity instruments from another party to satisfy its obligations to its employees under the share-based payment arrangement by delivery of its own shares, the transaction is accounted for as equity-settled. This applies regardless of whether the employees' rights to the equity instruments were granted by the Group itself, or by its shareholders, or were settled by either the Group or its shareholders.
|
Group |
Company |
|
31 March
2026
Rm |
31 March
2025
Rm |
31 March
2026
Rm |
31 March
2025
Rm |
| Non-distributable reserves |
591 |
585 |
165 |
171 |
| Opening balance |
585 |
750 |
171 |
278 |
| Movement during the year |
6 |
(165) |
(6) |
(107) |
| Increase/(decrease) in foreign currency translation reserve |
8 |
(13) |
— |
— |
| Movement in treasury shares for Telkom and subsidiaries share scheme |
— |
(107) |
— |
(107) |
| Escrow shares realised for settlement to employees |
(2) |
— |
(6) |
— |
| Increase in treasury shares from BCX |
— |
(45) |
— |
— |
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|
|
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The reserve also represents amounts paid by Telkom to its subsidiary, Rossal No 65 (Pty) Ltd, for the acquisition of Telkom's shares to be utilised in terms of the Telkom Group employee share scheme.
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31 March 2026 |
31 March 2025 |
| Fair value of ordinary shares in Telkom are held as follows: |
Number of
shares |
Rm |
Number of
shares |
Rm |
| Treasury shares in Escrow |
10 361 492 |
609 |
12 118 701 |
451 |
| Rossal No 65 (Pty) Ltd |
6 738 959 |
396 |
6 738 959 |
251 |
| Total |
17 100 451 |
1 005 |
18 857 660 |
702 |
All shares will be allocated to employees as part of the Telkom Group employee share scheme.
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