Adcock Ingram Integrated Report 2018

ANNUAL FINANCIAL STATEMENTS Notes to the Group annual financial statements continued 80 ADCOCK INGRAM  Integrated Report 2018 7 TAXATION (continued) 2018 2017 % % Reconciliation of the taxation rate: Effective rate 28.0 28.3 Adjusted for: Exempt income (dividend income) 0.1 0.2 Non-deductible expenses* (2.8) (2.7) Prior year under/(over) provision** 0.2 (0.3) Equity accounted earnings 2.5 2.5 South African normal tax rate 28.0 28.0 R‘000 R‘000 The Group has tax losses of R3.8 million (2017: R26.7 million) for offsetting against future taxable profits of the company in which the loss arose. All unutilised assessed losses from continuing operations were recognised as a deferred tax asset in the current year and the prior year. South Africa (indefinite expiry) 3 871 26 734 * Includes amortisation/impairment of intangibles, share-based payment expenses, professional fees, impairment of investments amongst others ** Current tax and deferred tax 8 EARNINGS PER SHARE Headline earnings is determined as follows: Continuing operations Earnings attributable to owners of Adcock Ingram from total operations 637 943 553 534 Adjusted for: Profit attributable to Adcock Ingram from discontinued operations (note 2.1) – (39 903) Earnings attributable to owners of Adcock Ingram from continuing operations 637 943 513 631 Adjusted for: Impairment of intangible assets 2 700 – Profit on disposal/scrapping of property, plant and equipment (1 968) (194) Tax effect on profit on disposal of property, plant and equipment (42) 76 Adjustments relating to equity accounted joint ventures Impairment of goodwill 5 312 – Loss on disposal of long term receivable 828 – (Profit)/Loss on disposal of property, plant and equipment (24) 199 Headline earnings from continuing operations 644 749 513 712 Discontinued operations Profit attributable to owners of Adcock Ingram from discontinued operations 39 903 Adjusted for: Profit on sale of discontinued operations (note 2.1) (34 758) Loss on disposal/scrapping of property, plant and equipment 975 Headline earnings from discontinued operations 6 120 Headline earnings from total operations 644 749 519 832