| Notes to the Group annual financial statements l
Note 4.4 |
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Inventories comprise prepaid airtime (including physical prepaid airtime), handsets and other related products.
Inventories are stated at the lower of cost or estimated net realisable value. Cost comprises direct materials and,
where applicable, overheads that have been incurred in bringing the inventories to their present location and
condition, excluding borrowing costs. The cost of inventory is determined by means of the weighted average cost
basis. Net realisable value is the estimate of the selling price in the ordinary course of business, less selling expenses.
Provisions are made for obsolete, unusable and unsaleable inventory and for latent damage first revealed when
inventory items are taken into use or offered for sale. |
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2017
R’000 |
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2016
R’000 |
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| Finished goods |
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| Prepaid airtime |
2 067 904 |
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1 473 828 |
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| Handsets |
84 676 |
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158 815 |
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| Other* |
27 541 |
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26 217 |
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2 180 121 |
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1 658 860 |
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* Other inventory mainly consists of starter packs and consumables.
Inventories with a cost of R24.1 billion (2016: R24.4 billion) were sold during the year and have been charged to the
income statement.
A general notarial bond is held by Investec Bank Limited over airtime up to R1.5 billion (2016: R1.5 billion). |
| Notes to the Group annual financial statements l Note 4.4 |
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