NOTES TO THE FINANCIAL STATEMENTS - NOTE 21


 

21. Non-current asets and labilities held-for-sale
  A discontinued operation is a component which has been disposed of or is classified as held-for-sale as it is intended to be sold and it represents a separate major line of business or geographical area of operations.

Indirectly held subsidiary – Eskom Energie Manantali s.a (EEM)

During the prior year an interim operating and maintenance contract between EEM and Société de Gestion de l’Energie de Manantali (SOGEM) was approved until 30 June 2013 and the process to finalise an additional 10-year contract was in progress.

The authorities of the countries involved decided in January 2014 that there would be one more attempt by EEM and SOGEM to reach agreement on the 10-year operating and maintenance contract through mediation, and if this process was not successful by 30 April 2014 EEM will exit from the arrangement. Although significant progress was made, agreement on this contract could not be reached by the cut off date.

Based on the above, it is management’s determination that the assets and liabilities of EEM constitute non-current assets and liabilities held-for-sale in terms of IFRS 5 Non-curent assets held-for-sale and discontinued operations. Details regarding EEM can be found under service concession arrangements. Refer to note 22.

A consolidated analysis of the assets and liabilities held-for-sale are disclosed as follows:

  Group  
        2014           2013  
  EEM

Rm
    Aviation
assets
Rm
    Total

Rm
    Total

Rm
 
Income statements                      
Revenue 117         117     93  
Net employee benefit expense (61)         (61)     (35)  
Net impairment reversal             28  
Depreciation and amortisation expense (9)         (9)     (8)  
Other operating expenses (40)         (40)     (56)  
Operating profit before finance income 7         7     22  
Other income 29         29     6  
Operating profit before finance income 36         36     28  
Finance income 28         28     24  
Profit before tax 64         64     52  
Income tax (1)         (1)     (5)  
Profit for the year from discontinued operations 63         63     47  
Statements of cash flows                      
Net cash (used in)/from operating activities (23)         (23)     48  
Net cash from investing activities     7     7     46  
  (23)     7     (16)     94  
Statements of financial position                      
Assets                      
Non-current assets                      
Property, plant and equipment 29     1     30     8  
Current assets 117         117      
Inventories 7         7      
Trade and other receivables 9         9      
Cash and cash equivalents 101         101      
  146     1     147     8  
Liabilities                      
Current liabilities 113         113      
Provisions 10         10      
Trade and other payables 101         101      
Taxation 2         2      
  113         113