ECIC IR 2023
ANNUAL Financial Statements for the year ended 31 March 2023
E
D
H
S
I
L I
N
B
2
0
A
0
T
S
1
E
E X P O R T C R E
L T D
O C
A S
C
R I
D I
F
T
A
I
N
H
S
T
U
U
R
O
A
S
N
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C
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E
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Notes to the Financial Statements
Reconciliation of deferred tax asset/(liability) – 2022
Rate change adjustment recognised in other comprehen‑ sive income R’000
Rate change adjustment recognised in profit or loss R’000
Recognised in other comprehen‑ sive income R’000
Recognised in profit or loss R’000
Closing balance R’000
Opening balance R’000
Assets Property and equipment Financial assets at fair value through profit or loss Financial assets available for sale
263
(459)
-
7
-
(189)
(7 892)
7 129
-
27
-
(736)
(2 815)
3 243
(775)
293
(281)
(335) (497)
Prepayments
(437)
(79)
- -
19
- -
Unused tax losses
-
46 321
(1 654)
44 667
Liabilities Provisions
6 891
1 159
-
(287)
-
7 763
Payments received in advance
152
(67)
-
(3)
-
82
(3 838)
57 247
(775)
(1 598)
(281)
50 755
Recognition of deferred tax asset A deferred tax asset of R64 million (2022: R45 million) has been recognised for the tax losses reported in the current financial year of R239 million (2022: R165 million) as a result of the IBNR raised. In the previous years, the Corporation generated taxable profits and is expected to generate taxable profits from the 2024 financial year onwards. The deferred tax asset is expected to be utilised within the 2025 financial year. This is demonstrated in the Corporation’s strategic plan for 2023/24 to 2027/28 financial years. Use and sales rate The deferred tax rate applied to the fair value adjustments of investments is determined by the expected manner of recovery which is through sale at the capital gain inclusion rate of 80% of the applicable tax rate of 27%. For other assets, the expected manner of recovery is through indefinite use and the normal tax rate of 27% is applied.
YOUR EXPORT RISK PARTNER
56
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