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

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

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.

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