Group |
Company |
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29. Provisions |
2015 Rm |
2014 Rm |
2015 Rm |
2014 Rm |
|||||||||
| Non-current employee-related | 437 | 1 388 | 437 | 1 373 | |||||||||
| Annual leave | 527 | 533 | 524 | 527 | |||||||||
| Balance at beginning of year | 533 | 510 | 527 | 501 | |||||||||
| Charged to employee expenses | 28 | 78 | 28 | 78 | |||||||||
| Transfer of provision due to the disposal of the iWayAfrica group | – | (3) | – | – | |||||||||
| Transfer of provision due to the Trudon group classified as held for sale | (3) | – | – | – | |||||||||
| Leave paid/utilised | (31) | (52) | (31) | (52) | |||||||||
| Post-retirement medical aid (refer to note 31) | – | 1 374 | – | 1 353 | |||||||||
| Balance at beginning of year | 1 374 | 5 328 | 1 353 | 5 305 | |||||||||
| Transfer of provision due to the Trudon group classified as held for sale | (21) | – | – | – | |||||||||
| Interest cost | 276 | 468 | 276 | 468 | |||||||||
| Current service cost | 4 | 62 | 4 | 62 | |||||||||
| Interest on plan asset | (236) | (197) | (236) | (197) | |||||||||
| Actuarial loss/(gain) | 423 | (1 026) | 423 | (1 026) | |||||||||
| Curtailment gain | – | (2 403) | – | (2 403) | |||||||||
| Transfer from sinking fund to annuity policy | – | (85) | – | (85) | |||||||||
| Settlement (gain)/loss | (221) | 234 | (221) | 234 | |||||||||
| Contributions paid* | (2 023) | (1 007) | (2 023) | (1 005) | |||||||||
| Transfer to employee benefits assets (refer to note 31) | 424 | – | 424 | – | |||||||||
| Telephone rebates (refer to note 31) | 471 | 375 | 471 | 375 | |||||||||
| Balance at beginning of year | 375 | 422 | 375 | 422 | |||||||||
| Interest cost | 33 | 31 | 33 | 31 | |||||||||
| Current service cost | 3 | 4 | 3 | 4 | |||||||||
| Curtailment loss | – | (1) | – | (1) | |||||||||
| Actuarial loss/(gain) | 88 | (56) | 88 | (56) | |||||||||
| Benefits paid | (28) | (25) | (28) | (25) | |||||||||
| Bonus | 986 | 703 | 977 | 692 | |||||||||
| Balance at beginning of year | 703 | 787 | 692 | 772 | |||||||||
| Transfer of provision due to the Trudon group classified as held for sale | (3) | – | – | – | |||||||||
| Charged to employee expenses | 969 | 754 | 961 | 747 | |||||||||
| Payments made | (683) | (838) | (676) | (827) | |||||||||
| Termination packages and other benefits | 320 | – | 320 | – | |||||||||
| Less: Current portion of employee-related provisions | (1 867) | (1 597) | (1 855) | (1 574) | |||||||||
| Annual leave | (526) | (533) | (524) | (527) | |||||||||
| Post-retirement medical aid | – | (329) | – | (323) | |||||||||
| Telephone rebates | (34) | (32) | (34) | (32) | |||||||||
| Bonus | (987) | (703) | (977) | (692) | |||||||||
| Termination packages and other benefits | (320) | – | (320) | – | |||||||||
| Non-current non-employee-related | 39 | 108 | 39 | 95 | |||||||||
| Other | 341 | 839 | 341 | 826 | |||||||||
| Less: Current portion of other provisions | (302) | (731) | (302) | (731) | |||||||||
| Other | (302) | (731) | (302) | (731) | |||||||||
| * Includes an amount of R1 950 million (2014: R878 million) paid in terms of the settlement of the post-retirement medical aid liability. |
Annual leave
In terms of Telkom's policy, employees are entitled to accumulate vested leave benefits not taken within a leave cycle, to a cap of 22 days (2014: 22 days) which must be taken within an 18 - month (2014: 18-month) leave cycle. The leave cycle is reviewed annually and is in accordance with legislation.
Bonus
The bonus scheme consists of performance bonuses which are dependent on the achievement of certain financial and non-financial targets. The bonus is payable annually to all qualifying employees after the company's results have been made public.
Non-employee-related provisions
The decrease in non-employee-related provisions is due to the reclassification at 30 September 2014 of an amount of R304 million to trade and other receivables to more accurately reflect the substance of a transaction with a third party. The partial settlement of the fine imposed by the Competition Commission has also contributed to the decrease in the non-employee-related provision.
Other provisions contain provisions for certain legal matters that have been disclosed in the contingencies note (refer to note 39).