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COMPANY – NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER
NOTES TO THE ANNUAL
FINANCIAL STATEMENTS
1. INVESTMENTS IN SUBSIDIARIES
Rand million 2011 2010
Reflected as non-current assets
Shares at cost 3 3
Share-based payment expenditure* 149 406
Long-term loans to subsidiaries 61 425
Short-term loans from subsidiaries (18) –
Net investments in subsidiaries 195 834
* Arising from the accounting for share-based payment transactions in terms of IFRS 2.
Investments in subsidiaries are accounted for at cost.
For further details of interests in significant subsidiaries, refer to annexure 1.
2. DEFERRED TAX ASSET
Rand million 2011 2010
Balance at beginning of year 1 1
Balance at end of year 1 1
Deferred tax asset attributable to the following temporary differences
Leave pay accrual 1 1
Total deferred tax assets 1 1
3. CASH AND CASH EQUIVALENTS
Rand million 2011 2010
Cash 147 543
Currency analysis of cash and cash equivalents
Rand 147 543
Credit risk
Cash and cash equivalents are held in various financial institutions with long-term investment grade credit rating and with the capacity for
payment of financial commitments considered strong.
Fair value of cash and cash equivalents
The carrying amount of cash and cash equivalents approximate their fair value because of the short period maturity of these instruments.
72 Kumba Iron Ore Limited