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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
OPERATING
PERFORMANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
237
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
2014
2013
R’000
R’000
5.
DEFERRED TAXATION
At the beginning of the year
(5 698)
2 208
Credited/(charged) to the statement of comprehensive income:
Provisions
6 850
(7 677)
Tax losses
(8 121)
—
Capital allowances
(49)
(49)
Equity compensation benefit
(105)
70
Other
386
(250)
At the end of the year
(6 737)
(5 698)
Deferred taxation comprises:
Provisions
(941)
(7 791)
Tax losses
(8 121)
—
Capital allowances
136
185
Equity compensation benefit
3 249
3 354
Other
(1 060)
(1 446)
(6 737)
(5 698)
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax assets
Deferred tax assets to be recovered after more than 12 months
458
251
Deferred tax assets to be recovered within 12 months
(7 195)
(5 949)
(6 737)
(5 698)
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months
—
—
Deferred tax liabilities to be recovered within 12 months
—
—
—
—
Net deferred tax asset
(6 737)
(5 698)
Where deferred tax assets have been recognised, a formal process of assessment of the future profitability
of the Company has been performed based on detailed budgets and cash flow forecasts. As a result,
management believes that the current tax losses will be utilised within one to five years. There are no
unrecognised tax losses in the current year (2013: R nil).