7.5 Deferred tax

	Group		Company
At 31 December	2019 Rm	2018 Rm	2019 Rm	2018 Rm
The movements on deferred tax are as follows:
At beginning of the year	(6 351)	(5 417)	374	165
Items charged to profit or loss	(258)	(777)	(31)	227
– Current year	(317)	(772)	(59)	258
– Prior year	59	(5)	28	(31)
Items charged directly to equity	(72)	(147)	(47)	(18)
– Share-based payments movement	(72)	(29)	(47)	(20)
– Adjustments on initial application of IFRS 9		4		2
– Adjustments on initial application of IFRS 15		(122)
Items charged directly to other comprehensive income	(7)	(27)
– Revaluation of financial asset at FVOCI		(12)
– Retirement employee obligations	(7)	(15)
Reclassification from non-current assets held-for-sale		17
Derecognised on loss of control of subsidiary	17
At end of the year	(6 671)	(6 351)	296	374

– Deferred tax asset	467	523	296	374
– Deferred tax liability	(7 138)	(6 874)

	Group
	At 31 December 2018			Movement during the year
	Assets Rm	Liabilities Rm	Total net liability Rm	Recognised in profit or loss Rm	Loss of control of subsidiary Rm	Recognised in other comprehensive income Rm
Property, plant and equipment	131	(6 319)	(6 188)	(502)	17
Right-of-use assets				(120)
Share-based payments	165	58	223	4
Other accruals and provisions	(197)	489	292	220
Bad debt reassessment	16	38	54	(9)
Restoration provisions	348	356	704	(23)
Decommissioning provisions	58	68	126	26
Leave pay accrual	24	24	48	9
Retention payables	2	86	88	76
Prepayments	(6)	(29)	(35)	(2)
Environmental rehabilitation funds	(192)	(287)	(479)	(72)
Income received in advance	5	1	6	1
Inventories	(9)	34	25	(16)
Unrealised foreign currency gains/(losses)	1		1
Lease receivables		(20)	(20)	1
Local tax losses carried forward	334	224	558	(193)
Revaluation of financial assets at FVOCI	27	(109)	(82)
Retirement employee obligations	54	5	59	4		(7)
Deferred tax assets not recognised or derecognised	(235)	(1 297)	(1 532)	206
Investment in RBCT	(11)	(197)	(208)	12
Unclaimed donations	8		8	2
Lease liabilities		1	1	118
Total	523	(6 874)	(6 351)	(258)	17	(7)

	Group
	Movement during the year		At 31 December 2019
	IFRS 16 adjustment Rm	Recognised directly in equity Rm	Assets Rm	Liabilities Rm	Total net liability Rm
Property, plant and equipment	4		588	(7 257)	(6 669)
Right-of-use assets	(19)		(141)	2	(139)
Share-based payments		(72)	115	40	155
Other accruals and provisions			(41)	553	512
Bad debt reassessment			21	24	45
Restoration provisions			425	256	681
Decommissioning provisions			96	56	152
Leave pay accrual			28	29	57
Retention payables			57	107	164
Prepayments			(14)	(23)	(37)
Environmental rehabilitation funds			(294)	(257)	(551)
Income received in advance			7		7
Inventories			(8)	17	9
Unrealised foreign currency gains/(losses)	(1)
Lease receivables				(19)	(19)
Local tax losses carried forward			310	55	365
Revaluation of financial assets at FVOCI				(82)	(82)
Retirement employee obligations			51	5	56
Deferred tax assets not recognised or derecognised			(879)	(447)	(1 326)
Investment in RBCT				(196)	(196)
Unclaimed donations			10		10
Lease liabilities	16		136	(1)	135
Total		(72)	467	(7 138)	(6 671)

		Company
	At 31 December 2018	Movement during the year			At 31 December 2019
	Asset Rm	IFRS 16 adjustment Rm	Recognised in profit or loss Rm	Recognised directly in equity Rm	Assets¹ Rm
Property, plant and equipment	(56)		18		(38)
Right-of-use assets		(5)	(118)		(123)
Share-based payments	142		4	(47)	99
Other accruals and provisions	29		22		51
Bad debt reassessment			3		3
Restoration provisions	10				10
Leave pay accrual	4		3		7
Environmental rehabilitation funds	(7)		(1)		(8)
Unrealised foreign currency gains/ (losses)	1		(1)
Lease liabilities		5	125		130
Capital losses	227		(62)		165
Assessed losses	24		(24)
Total	374		(31)	(47)	296

¹	The deferred tax asset recognised for the company is supported by sufficient forecast profits to be utilised. The forecast profits are based on agreements in place with commodity businesses within Exxaro and other external parties.

Calculated tax losses

	Group		Company
At 31 December	2019 Rm	2018 Rm	2019 Rm	2018 Rm
Tax losses available for set off against future taxable profits on which deferred tax was raised
– Local	(1 304)	(1 993)		(86)
Current year tax losses on which no deferred tax assets were raised	329	52

Exxaro report selector 2019