Notes to the condensed consolidated provisional annual financial statements
for the year ended 31 March 2014
2014 |
Restated |
|
|---|---|---|
Rm |
Rm |
|
| Provisions | ||
| Non-current portion of provisions | 1 496 | 5 390 |
| Employee related | 1 388 | 5 152 |
| Non-employee related | 108 | 238 |
| Current portion of provisions | 2 328 | 3 391 |
| Employee related | 1 597 | 2 605 |
| Non-employee related | 731 | 786 |
| The decrease in non-current employee related provisions is mainly due to the effect of the net curtailment gain of R2,2 billion recognised on the post-retirement medical aid benefit. Telkom allowed eligible employees the option to transfer their post-retirement medical aid benefit to an insurer The Company curtailed the medical cap increase to 0% for active members due to rising operational costs and affordability. Of the 9 302 eligible employees, 7 654 employees exercised their option to transfer their benefit to an insurer. | ||
| Non-employee related provisions decreased due to the partial payment of the fine imposed by the Competition Commission. | ||
| The reduction of the current portion of employee related provisions is attributable to the post-retirement medical aid curtailment and decreased bonus provision due to lower headcount. |