Group |
Company |
||||||||||||
26. Non-distributable reserves |
2015 Rm |
2014 Rm |
2015 Rm |
2014 Rm |
|||||||||
| 1 507 | 2 580 | 786 | 1 859 | ||||||||||
| Opening balance | 2 580 | 2 164 | 1 859 | 1 569 | |||||||||
| Movement during the year | (1 073) | 416 | (1 073) | 290 | |||||||||
| Foreign currency translation reserve | – | 4 | – | – | |||||||||
| Recycling of foreign currency translation reserve in profit and loss | – | 122 | – | – | |||||||||
| Transfer of treasury shares | (775) | – | (775) | – | |||||||||
| Realised gains of the cell captive reserve | (519) | (53) | (519) | (53) | |||||||||
| Revaluation of the cell captive reserve | 221 | 343 | 221 | 343 | |||||||||
| The balance comprises: | 1 507 | 2 580 | 786 | 1 859 | |||||||||
| Cell captive reserve | 2 282 | 2 580 | 1 561 | 1 859 | |||||||||
| Shares held by subsidiaries and in escrow | (775) | – | (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 subsidiaries, Rossal No 65 Proprietary Limited and Acajou Investments Proprietary Limited, for the acquisition of Telkom's shares to be utilised in terms of the Telkom Employee Share Plan.
Fair value of ordinary shares in Telkom are held as follows:
| 2015 Number of share |
2015 Rm |
2014 Number of shares |
2014 Rm |
||||||||||
| Escrow | 6 558 915 | 519 | – | – | |||||||||
| Rossal No 65 Proprietary Limited | 2 046 528 | 162 | 2 046 528 | 69 | |||||||||
| Acajou Investments Proprietary Limited | 1 584 641 | 126 | 8 143 556 | 274 | |||||||||
| Total | 10 190 084 | 807 | 10 190 084 | 343 |
All shares will be allocated to employees as part of the new employee share plan.