| NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 15 |
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|
2014
R'000 |
|
2013
R'000 |
|
| 15. |
PROVISIONS |
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Unredeemed electricity provision |
|
|
|
|
|
| |
Opening balance |
|
19 029 |
|
6 260 |
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| |
Additions |
|
617 853 |
|
535 279 |
|
| |
Used during the year |
|
(619 378) |
|
(522 510) |
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| |
|
|
17 504 |
|
19 029 |
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| |
Less: Amounts included in current portion of provisions |
|
(17 504) |
|
(19 029) |
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| |
|
|
— |
|
— |
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| |
The unredeemed electricity provision raised represents the value of electricity vouchers sold and unredeemed as at year-end, payable by the Group to the municipalities on redemption by the end customer. |
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Redemption is dependent on activation by customers. This is expected to occur within the first quarter of the following financial year. |
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Onerous contracts |
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|
|
|
|
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Opening balance |
|
— |
|
— |
|
| |
Acquisition of subsidiary |
|
7 406 |
|
— |
|
| |
Additions |
|
— |
|
— |
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| |
Used during the year |
|
(421) |
|
— |
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| |
|
|
6 985 |
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— |
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Less: Amounts included in current portion of provisions |
|
(6 273) |
|
— |
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| |
|
|
712 |
|
— |
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| |
The onerous contracts relate to line subscriptions for which the Group is contracted to incur unavoidable
charges that are expected to exceed the related economic benefits to be received. A provision is raised due
to the uncertainty associated with the amount of net outflow for each subscription.
The provision will be used over the period of each subscription, ranging from one to 24 months. |
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| NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 15 |
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