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Other operating expenses and income
12 Months Ended
Jun. 30, 2020
Other operating expenses and income  
Other operating expenses and income

7Other operating expenses and income

 

for the year ended 30 June

 

2020
Rm

 

2019
Rm

 

2018
Rm

 

Rentals(1)

 

 

1 845

 

1 497

 

Short-term lease expense

 

525

 

 

 

Insurance

 

681

 

514

 

432

 

Computer costs

 

2 469

 

2 155

 

2 042

 

Hired labour

 

844

 

786

 

838

 

Audit remuneration(2)

 

144

 

97

 

88

 

Derivative losses (including foreign exchange contracts)(3)

 

6 997

 

2 465

 

3 927

 

Professional fees

 

2 067

 

2 226

 

1 971

 

Enablement of digital and continuous improvement initiatives

 

333

 

454

 

409

 

Other

 

1 734

 

1 772

 

1 562

 

Changes in rehabilitation provisions(4)

 

(2 078

)

1 096

 

(804

)

Other expenses(5)

 

10 631

 

9 880

 

6 724

 

Other operating income

 

(1 446

)

(1 363

)

(1 410

)

 

 

20 834

 

19 701

 

15 305

 

 

 

 

 

 

 

 

 


 

(1)Relates to the application of IFRS 16, as leases previously classified as operating leases under IAS 17 are now capitalised.

 

(2)Audit remuneration include R32 million for the audit of the independent review, commissioned by the Board of Directors, of the Lake Charles Chemical Project (LCCP).

 

(3)Relates mainly to the group’s hedging activities. The increase in losses from 2019 relates to a loss of R1 562 million on the US dollar derivative in the Oxygen Train 17 supply agreement to our Secunda Synfuels Operations that was recognised on adoption of IFRS 16, as well as a loss of R4 298 million on our foreign exchange zero cost collars.

 

(4)R1,3 billion (2019 — R688 million; 2018 — (R803 million)) relates to the change in discount rates applied in calculating the rehabilitation provision.

 

(5)Increase relates to a R586 million management fee relating to the Oxygen Train 17 oxygen supply agreement with Air Liquide, which was recognised as a finance lease under IAS17. With the adoption of IFRS 16 the agreement was recognised as a service agreement.