Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the reporting date. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which
the group expects, at the reporting date, to recover or settle the carrying amount of its assets and
Deferred tax assets and liabilities are not recognised for taxable temporary differences associated
with investments in subsidiaries because the group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same
taxation authority and the group intends to settle its current tax assets and liabilities on a net basis.
3.6. Dividends
Dividends and related taxation thereon are recognised as a liability in the period in which they have
been declared and become legally payable.
Retained earnings legally distributable by the Company are based on the amounts available for
distribution in accordance with the applicable legislation and as reflected in the statutory financial
statements of the individual subsidiaries of the group. These amounts may differ significantly from
the amounts calculated on the basis of IFRS.
3.7. Intangible assets
Intangible assets are carried at cost less accumulated amortisation and impairment losses.
Intangible assets with a finite useful life are amortised on a straight-line basis over the estimated
economic useful life of the asset. The amortisation of such intangible assets is included in
Cost of
sales
Selling, general and administrative
expenses based on whether intangible asset is used in
operating activities or not. Intangible assets with an infinite useful life are not amortised.
The remaining useful lives of the group’s intangible assets are from 1 to 15 years.
The group applies IAS 36
Impairment of Assets
to determine whether an intangible asset is impaired
and accounts for any identified impairment loss when incurred.
3.8. Property, plant and equipment
Fixed assets
Fixed assets are recorded at cost less accumulated depreciation. Fixed assets include the cost of
acquiring and developing mining properties, pre-production expenditure and mine infrastructure,
processing plant, mineral rights and mining and exploration licences and the present value of future
mine closure, rehabilitation and decommissioning costs.
Fixed assets are amortised on a straight-line basis over the estimated economic useful life of
the asset, or the remaining life-of-mine in accordance with the mine operating plans (MOPs),
whichever is shorter.
Depreciation is charged from the date a new mine reaches commercial production quantities and is
included in the
Cost of sales
,
Selling, general and administrative expenses
or
assets
accordingly. The estimated remaining useful lives of the group’s significant mines and
processing facilities based on the MOPs are as follows: