Notes to the Financial Statements
for the year ended 31 December 2004
32 Insurance Provisions For Other Risks And Charges
| Rm | ||||
Deferred tax (note 32(a)) |
Pension and retirement obligations |
Other provisions |
Total |
|
| Group | ||||
| Year to 31 December 2004 | ||||
| At beginning of year | 3,521 |
883 |
2,172 |
6,576 |
| Charge to the profit and loss account | 1,026 |
94 |
661 |
1,781 |
| Utilised during the year | - |
(224) |
(437) |
(661) |
| Released during the year | - |
- |
(83) |
(83) |
| Foreign exchange and other movements | (631) |
61 |
(111) |
(681) |
| At end of year | 3,916 |
814 |
2,202 |
6,932 |
| Year to 31 December 2003 | ||||
| At beginning of year | 3,191 |
1,119 |
2,404 |
6,714 |
| Acquisition of subsidiaries | 1,099 |
408 |
2,420 |
3,927 |
| Charge to the profit and loss account | - |
(790) |
(1,469) |
(2,259) |
| Utilised during the year | - |
- |
(49) |
(49) |
| Foreign exchange and other movements | (769) |
146 |
(1,134) |
(1,757) |
| At end of year | 3,521 |
883 |
2,172 |
6,576 |
The provision for pension and other retirement obligations relates to £55 million (R597 million) (2003: £53 million (R632 million)) for pension contributions referred to in note 14(a) and £20 million (R217 million) (2003: £21 million (R251 million)) for post retirement benefits referred to in note 14(b).
Other provisions relate to provisions for impairment of various life operations within the Group, warranty provisions in respect of businesses sold, employee obligations, onerous property leases and obligations in respect of unclaimed share trusts (note 5(f)).
| Rm | ||
| 32(a) Deferred tax liability | At 31 December 2004 |
At 31 December 2003 |
| The deferred tax liability arises from: | ||
| Deferred acquisition costs | 2,647 |
2,184 |
| Other short term timing differences | 1,269 |
1,337 |
3,916 |
3,521 |
There were no unrecognised deferred tax liabilities as at 31 December 2004 (2003: nil).
| Rm | ||
| 32(b) Provisions for liabilities and charges - Company | At 31 December 2004 |
At 31 December 2003 |
| At beginning of year | 310 |
525 |
| Charge to the profit and loss account | 142 |
- |
| Utilised during the year | (201) |
(148) |
| Foreign exchange and other movements | (23) |
(67) |
| At end of year | 228 |
310 |
Provisions for liabilities and charges primarily relate to employee obligations.
