Page 86 - Stellar IAR2015

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (CONTINUED)23. OTHER OPERATING EXPENSESR’000Audit feesConsulting and professional fees DepreciationEmployee costs and director fees Operating leaseSundry operating expenses Transaction costsGroup Company 2014- -(1 617)2 726 (421)(7 026)20141 282 4 679 9 979 - 1 748 - 8 697During the current year underwriting fees were incurred. The underwriting fees and other transaction costs directly related to the issue of ordinary shares and the equity portion of preference shares are recognised directly in equity in accordance with IAS 32. Similarly, transaction costs directly related to the liability portion of the preference shares are included in the carrying value of the liability and are amortised over the term of the liability in accordance with IAS 39 .24. TAXATIONR’000Major components of the tax expenseCurrent taxCurrent periodPrior period overprovisionDeferred taxOriginating and reversing temporary di erences (refer to note 8)R’000Reconciliation of the e ective tax rateTax at 28%Dividend income not subject to taxCapital gains taxCapital expenses not deductible for tax purposes1 Other expenses not deductible for tax purposes2 Loss / (pro t) on sale of Consolidated Subsidiaries Prior year overprovisionPreviously unrecognised deferred tax assets Reversal / (recognition) of estimated tax loss assets Utilisation of taxable lossesDerecognition of deferred tax liabilityImpact of discontinued operationsGroupCompany20142014- --- 2014(19 261) - - 13 345 167 5 059 - - - 690 - - -(1 505)GroupCompany2015(8 245) (2) (1 546) 2 423 219 3 902 (421) (870) 3 116 (81) - -(1 617)2014(4 721)2015(4 452) (419) (1 151) 2 420 206 (2) (421) (870) - (32) - -(1 505)504 - (11) 496 625 - - - (2 949) 723 (1 629) 624(1 617)(4 721)1 Capital expenses not deductible for tax purposes in respect of the current year consists of expenses incurred in relation to the acquisition or disposal of investments and expenses that have been deemed to be capital in nature, both of which are considered to be recurring in nature. In the previous reporting period capital expenses not deductible for tax purposes consisted of impairment of goodwill and other assets in respect of the Group and impairment of goodwill and other assets, investments in subsidiaries and impairment of loans to subsidiaries in respect of the Company. Impairments are not considered to be recurring in nature.2 Other expenses not deductible for tax purposes in respect of the current year consists of SARS interest and penalties and Securities Transfer Tax. In the previous reporting period other expenses not deductible for tax purposes consisted of legal fees, write-o of assets, provision for doubtful debts and certain forfeitable share plan costs in respect of the Group and legal fees in respect of the Company. All items included as part of other expenses not deductible for tax purposes are not considered to be recurring in nature.82 | STELLAR CAPITAL PARTNERS20151 986 2 620 - 3 399 - 3 291 4 8871 335 4 888 696 2 371 441 2 647 -20151 986 2 620 - 1 654 - 3 016 4 88716 18312 37814 16320152 726 (421)(3 810)2015