NOTES TO THE FINANCIAL STATEMENTS - NOTE 16


 

    2014     2013  
    Payments
made in
advance
Rm
    Environmental
rehabilitation
trust fund
Rm
    Total


Rm
    Total


Rm
 
16. Payments made in advance                      
  Group                      
  Balance at beginning of the year 4 299     180     4 479     3 591  
  Transfer to profit or loss (658)         (658)     (269)  
  Transfer to the statement of financial position (1 847)         (1 847)     (1 735)  
  Payments made during the year 3 325     141     3 466     2 892  
    5 119     321     5 440     4 479  
  Maturity analysis 5 119     321     5 440     4 479  
  Non-current 2 355     321     2 676     2 646  
  Current 2 764         2 764     1 833  
  Company                      
  Balance at beginning of the year 4 189     180     4 369     3 543  
  Transfer to profit or loss (652)         (652)     (268)  
  Transfer to the statement of financial position (1 847)         (1 847)     (1 735)  
  Payments made during the year 3 259     141     3 400     2 829  
    4 949     321     5 270     4 369  
  Maturity analysis 4 949     321     5 270     4 369  
  Non-current 2 188     321     2 509     2 520  
  Current 2 761         2 761     1 849  
  Payments made in advance

Payments made in advance comprises of payments made to suppliers and to issuers of loan facilities. Payments made to suppliers are made to reserve manufacturing capacity for the future construction of assets and for future goods and services. These amounts will be used as partial settlement towards the future amounts payable to the suppliers. There is no contractual right to receive a refund in cash or another financial instrument from the suppliers. In the event of default or non-performance, there are performance bonds in place that can be used to recover outstanding payments in advance. Payments made to loan facility issuers are for commitment and issuing fees. These amounts are transferred to the loan balances when the loan is accessed.

Environmental rehabilitation trust fund

Payments made in advance also include contributions made by Eskom to an environmental rehabilitation trust fund. The fund was established to fund Eskom’s financial obligation in respect of the rehabilitation of certain coal mines from which Eskom sources its coal for the generation of electricity. The fund is controlled by third parties to be solely utilised for the said environmental rehabilitation.