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19. TAXATION
Rand million 2011 2010
Taxation expense
Current taxation 5,344 6,318
Deferred taxation 2,614 (390)
STC 1,802 885
9,760 6,813
Charge to the income statement
South African normal taxation
Current year 5,389 6,292
Prior year (120) –
Foreign taxation
Current year 74 44
Prior year 1 (18)
STC 1,802 885
Income taxation 7,146 7,203
Deferred taxation
Current year 2,614 (399)
Prior years – 9
9,760 6,813
% 2011 2010
Reconciliation of taxation rates
Taxation as a percentage of profit before taxation 30.4 27.1
Taxation effect of:
Disallowable expenditure (0.1) (0.1)
Exempt income 2.2 2.6
Deferred tax asset raised in the current year on unrecognised taxation losses brought forward 0.7 1.8
Rate difference on tax rate 0.2 0.2
STC (5.6) (3.5)
Prior year underprovision 0.4 –
Equity-settled share-based payments (0.2) (0.3)
Foreign exchange translation differences – 0.2
Standard taxation rate 28.0 28.0
20. PER SHARE INFORMATION
Attributable earnings per share is calculated by dividing profit attributable to shareholders of Kumba by the weighted average number of ordinary
shares in issue during the year, excluding ordinary shares purchased by the group and held as treasury shares.
Audited annual financial statements
For the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential
dilutive ordinary shares as a result of share options granted to employees under the employee share incentive schemes. A calculation is
performed to determine the number of shares that could have been acquired at fair value, determined as the average annual market share price
of the company’s shares based on the monetary value of the subscription rights attached to the outstanding share options.
Rand million 2011 2010
Profit attributable to equity holders of Kumba 17,042 14,323
Number of shares
Weighted average number of ordinary shares in issue 320,895,696 320,727,067
Potential dilutive effect of outstanding share options 836,000 964,068
Diluted weighted average number of ordinary shares in issue 321,731,696 321,691,135
Annual Financial Statements 2011
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