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10. PROVISIONS continued
Change in accounting estimate
mines. The effect of these changes are detailed below:
Rand million
Environmental
rehabilitation Decommissioning Total
Amount of the closure cost 64 18 82
Expected timing of future cash flows 67 20 87
131 38 169
The change in estimate in the environmental rehabilitation provision resulted in a decrease in attributable profit for 2011 of R72 million
(effect on earnings per share R0.22 per share) after taking into account taxation of R37 million and minority interest of R22 million.
The change in estimate in the decommissioning provision has been capitalised to the related property, plant and equipment (refer to note 1).
11. DEFERRED TAX
Rand million 2011 2010
Deferred tax assets
Reconciliation
Balance at beginning of year 472 129
Foreign exchange translation differences 130 (37)
Current year charge per the income statement 56 380
Balance at end of year 658 472
Expected timing
Deferred tax assets to be recovered after 12 months 504 327
Deferred tax assets to be recovered within 12 months 154 145
Balance at end of year 658 472
Deferred tax assets attributable to the following temporary differences
Estimated tax losses 639 459
Other 19 13
Total deferred tax assets 658 472
There was no unused tax losses for which a deferred tax asset was recognised at 31 December 2011 (2010: R681 million).
Rand million 2011 2010
Deferred tax liabilities
Reconciliation
Balance at beginning of year 2,272 2,282
Prior year adjustment – 9
Current year charge/(credit) per the income statement 2,670 (19)
Balance at end of year 4,942 2,272
Expected timing
Deferred tax liabilities to be recovered after 12 months 4,495 2,064
Deferred tax liabilities to be recovered within 12 months 447 208
4,942 2,272
Audited annual financial statements
Deferred tax liabilities attributable to the following temporary differences
Property, plant and equipment 5,061 2,460
Environmental rehabilitation provision (199) (149)
Decommissioning provision (20) (16)
Environmental rehabilitation trust asset 159 104
Leave pay accrual (46) (40)
Other (13) (87)
Total deferred tax liabilities 4,942 2,272
Annual Financial Statements 2011
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