Annual Report - JD Group

Notes to the Group annual financial statements continued
46
2004 2003
Rm Rm
13. Deferred taxation
Amount provided at beginning of year 268 224
At acquisition adjustment of Profurn (51) (107)
Deferred tax on STC credit from dividends received (43) –
Debited to income (note 6) 206 136
Foreign translation adjustments – 15
Amount provided at end of year 380 268
The deferred taxation provision comprises the following temporary differences:
Instalment sale receivables’ allowances 372 210
Provisions disallowed (81) (104)
Trademark (45) (55)
Trademark (2003: provisional) 50 95
Assets unrealised 6 7
Payments in advance 12 18
Other 131 152
Tax losses (51) (55)
STC credits (14) –
380 268
Deferred taxation is disclosed as:
Asset (160) (313)
Liability 540 581
380 268
14. Trade and other receivables
Instalment sale receivables (1)
6 394 6 592
Less: Provisions (1 850) (2 100)
Unearned finance charges (917) (965)
Bad debts (482) (697)
Other (2)
(451) (438)
Net instalment sale receivables 4 544 4 492
Other receivables 327 368
Total accounts receivable 4 871 4 860
Provisions as a percentage of instalment sale receivables (%) 28,9 31,9
In accordance with industry norms, amounts due from instalment sale receivables after one year are included in current assets.
The credit terms of instalment sale receivables range from 6 to 24 months.
(1) Classified as originated loans and receivables and carried at amortised cost.
(2) Other provisions consist of provisions for extended guarantees, unearned club, insurance and collection fees.
Bank borrowings are secured by a negative pledge of instalment sale receivables (note 18).