2020 INTEGRATED REPORT

Deferred tax has been provided on the revaluation difference arising on owner-occupied property owned by PPS Insurance Company Limited, based on the amounts and at the rate applicable to recovery through use. Owner occupied property is carried at fair value and is classified as level 3 in terms of the IFRS 13 hierarchy. All of the Group’s owner-occupied property consisting of office blocks situated at 6 and 7 Anerley Road, Parktown, and PPS Centurion Square were valued at 31 December 2020 by Quadrant Properties (Pty) Limited . Independent valuations were performed using the discounted cash flow of future income stream method. The discounted cash flow method takes projected cash flows and discount them at a rate which is consistent with comparable market transactions. Refer to note 35.5 for valuation assumptions. The opening carrying value is depreciated and then adjusted to reflect market value at year-end. If the owner-occupied properties were stated on a historical cost basis, the amounts would be as follows: Group 2020 2019 R’m R’m Cost 456 453 Accumulated depreciation (31) (22) Net book amount as at 31 December 425 431 LEASES Amounts recognised in the Statement of Financial Position The Statement of Financial Position includes the following amounts related to leases: Group 2020 2019 R’m R’m Right-of-use assets Buildings 57 68 Lease Liabilities (note 20) Current 21 21 Non-current 44 54 Total lease liabilities 65 75 Amounts recognised in the Statement of Profit or Loss and Other Comprehensive income The Statement of Profit and Loss and Other Comprehensive Income includes the following amounts related to leases: Group 2020 2019 R’m R’m Depreciation – Right-of-use assets: Buildings (included in expenses – Note 26) 23 22 Interest expense (included in finance costs – Note 28) 5 7 Expenses relating to short-term leases (included in expenses – Note 26) 1 6 The total cash outflow for leases in 2020 was R27.9 million (2019: R31.2 million). PPS INTEGRATED REPORT 2020 | 147