Telkom AR front.qxp

198
Telkom Annual Report 2009
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
2007 2008 2009
Rm Rm Rm
25. NON-DISTRIBUTABLE RESERVES 1,413 1,292 1,758
Opening balance 1,128 1,413 1,292
Transferred to disposal groups (4)
Movement during the year 285 (121) 470
Foreign currency translation reserve (net of taxation of R6 million
(2008: R6 million; 2007: R4 million) 46 521 (181)
Minority put option – (661) 661
Revaluation of an available-for-sale investment (net of taxation of R1 million)
Available-for-sale financial asset
– 8 –
Life fund reserve (cell captive) 239 11 (10)
The balance comprises: 1,413 1,292 1,758
Foreign currency translation reserve (58) 463 286
Cell captive reserve 1,471 1,482 1,472
Available-for-sale investment – 8 –
Minority put option – (661) –
The Group has a consolidated cell captive, used as an investment to fund
Telkom’s post-retirement medical aid liability.
The earnings from the cell captive are recognised in the income statement
and then transferred to non-distributable reserves.
Gains and losses from changes in the fair value of available-for-sale
investments are recognised directly in equity until the financial asset
is disposed of.
26. RETAINED EARNINGS 26,499 27,310 28,852
Opening balance 22,904 26,499 27,310
Movement during year 3,729 2,337 1,542
Net profit for the year 8,646 7,975 4,171
Transfer to non-distributable reserves (refer to note 25) (239) (11) 10
Premium on acquisition of minority interest in Multi-Links – – 667
Dividend declared (refer to note 35) (4,678) (5,627) (3,306)
Shares bought back (refer to note 22) (134) (1,526) –
The balance comprises: 26,499 27,310 28,852
Company 21,906 22,484 24,323
Joint venture 4,762 5,697 6,132
Subsidiaries 786 428 223
Eliminations (955) (1,299) (1,826)