4. COST OF SALES
ACCOUNTING POLICY
The following accounting policies relates to some costs that are included in cost of sales:
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be reliably estimated.
Pension and provident funds
The Group operates a defined contribution retirement plan and contributes to a number of industry-based defined contribution retirement plans. The retirement plans are funded by payments from employees and Group companies.
Contributions to defined contribution funds are expensed as incurred.
|
Figures in million - SA rand |
Notes |
2017 | 2016 | 2015 |
|
Salaries and wages |
|
(15,323.0) |
(9,276.1) |
(7,345.0) |
|
Consumable stores |
19 |
(8,789.4) |
(5,243.2) |
(3,995.7) |
|
Utilities |
|
(4,930.1) |
(3,709.0) |
(3,128.2) |
|
Mine contracts |
|
(2,956.9) |
(2,105.3) |
(1,457.9) |
|
Recycling |
|
(4,376.9) |
- |
- |
|
Other |
|
(3,398.0) |
(2,769.9) |
(2,758.5) |
|
Ore reserve development costs capitalised |
12 |
3,291.6 |
2,394.4 |
2,304.9 |
|
Cost of sales, before amortisation and depreciation |
|
(36,482.7) |
(20,709.1) |
(16,380.4) |
|
Amortisation and depreciation |
12 |
(5,699.7) |
(4,041.9) |
(3,636.6) |
|
Total cost of sales |
|
(42,182.4) |
(24,751.0) |
(20,017.0) |
The SA region employees are members of various defined contribution retirement plans. The cost of providing retirement benefits for the year amounted to R959.9 million (2016: R626.0 million and 2015: R691.1 million).