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Equity accounted investments | 12 Months Ended
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Jun. 30, 2019
Equity accounted investments. |
Equity accounted investments | 20 Equity accounted investments
|  | 2019 |  | 2018 |
for the year ended 30 June |  | Rm |  | Rm |
Amounts recognised in the statement of financial position: |  |  |  |  |
Investments in joint ventures and associates |  | 9 866 |  | 10 991 |
|  | 2019 |  | 2018 |
for the year ended 30 June |  | Rm |  | Rm |
Business segmentation |  |  |  |  |
 | Mining |  | 5 |  | 1 |
 | Energy |  | 9 449 |  | 9 667 |
 | Base Chemicals |  | 273 |  | 1 164 |
 | Performance Chemicals |  | 16 |  | 16 |
 | Group Functions |  | 123 |  | 143 |
Total carrying value of equity accounted investments |  | 9 866 |  | 10 991 |
|  | 2019 |  | 2018 |  | 2017 |
for the year ended 30 June |  | Rm |  | Rm |  | Rm |
Amounts recognised in the income statement: |  |  |  |  |  |  |
Share of profits of equity accounted investments, net of tax |  | 1 074 |  | 1 443 |  | 1 071 |
share of profits |  | 1 089 |  | 1 454 |  | 1 085 |
remeasurement items |  | (15 | ) | (11 | ) | (14 | )
Amounts recognised in the statement of cash flows: |  |  |  |  |  |  |
Dividends received from equity accounted investments |  | 1 506 |  | 1 702 |  | 1 539 |
There are no significant restrictions on the ability of the joint ventures or associate to transfer funds to Sasol Limited in the form of cash dividends or repayment of loans or advances. Impairment testing of equity accounted investments Based on impairment indicators at each reporting date, impairment tests in respect of investments in joint ventures and associates are performed. The recoverable amount of the investment is compared to the carrying amount, as described in note 9, to calculate the impairment. At 30 June, the group’s interest in equity accounted investments and the total carrying values were:
|  | Country of |  |  |  | Interest |  | 2019 |  | 2018 |
Name |  | incorporation |  | Nature of activities |  | % |  | Rm |  | Rm |
Joint ventures |  |  |  |  |  |  |  |  |  |  |
ORYX GTL Limited |  | Qatar |  | GTL plant |  | 49 |  | 8 239 |  | 8 179 |
Sasol Huntsman GmbH & co KG* |  | Germany |  | Manufacturing of chemical products |  | 50 |  | — |  | 893 |
Sasol Dyno Nobel (Pty) Ltd |  | South Africa |  | Manufacturing and distribution of explosives |  | 50 |  | 273 |  | 271 |
Sasol Chevron Holdings Limited |  | Bermuda |  | Marketing of Escravos GTL products |  | 50 |  | 274 |  | 311 |
Associates |  |  |  |  |  |  |  |  |  |  |
Escravos GTL (EGTL)** |  | Nigeria |  | GTL plant |  | 10 |  | 753 |  | 1 027 |
Other equity accounted investments |  |  |  |  |  | Various |  | 327 |  | 310 |
Carrying value of investments |  |  |  |  |  |  |  | 9 866 |  | 10 991 |
*The group’s investment in Sasol Huntsman GmbH & co KG has been classified as held for sale. Refer to note 11. **Although the group holds less than 20% of the voting power of EGTL, the group has significant influence with regards to the management and technical support to the plant. Summarised financial information for the group’s share of equity accounted investments which are not material***
|  | 2019 |  | 2018 |
for the year ended 30 June |  | Rm |  | Rm |
Operating profit |  | 13 |  | 419 |
(Loss)/profit before tax |  | (2 | ) | 427 |
Taxation |  | (56 | ) | (152 | )
(Loss)/profit and total comprehensive income for the year |  | (58 | ) | 275 |
***The financial information provided represents the group’s share of the results of the equity accounted investments.
|  | 2019 |  | 2018 |
Capital commitments relating to equity accounted investments |  | Rm |  | Rm |
Capital commitments, excluding capitalised interest, include all projects for which specific board approval has been obtained up to the reporting date. Projects still under investigation for which specific board approvals have not yet been obtained are excluded from the following: |  |  |  |  |
Authorised and contracted for |  | 715 |  | 536 |
Authorised but not yet contracted for |  | 1 100 |  | 623 |
Less: expenditure to the end of year |  | (532 | ) | (266 | )
|  | 1 283 |  | 893 |
Areas of judgement: Joint ventures and associates are assessed for materiality in relation to the group using a number of factors such as investment value, strategic importance and monitoring by those charged with governance. ORYX GTL is considered to be material as it is closely monitored and reported on to the decision makers and is considered to be a strategically material investment. Summarised financial information for the group’s material equity accounted investments In accordance with the group’s accounting policy, the results of joint ventures and associates are equity accounted. The information provided below represents the group’s material joint venture. The financial information presented includes the full financial position and results of the joint venture and includes intercompany transactions and balances.
|  | Joint venture |
|  | ORYX GTL Limited |
|  | 2019 |  | 2018 |
for the year ended 30 June |  | Rm |  | Rm |
Summarised statement of financial position |  |  |  |  |
Non-current assets |  | 11 964 |  | 12 202 |
Current assets |  | 6 722 |  | 6 640 |
Total assets |  | 18 686 |  | 18 842 |
Other non-current liabilities |  | 378 |  | 360 |
Deferred tax liability |  | (22 | ) | 9 |
Other current liabilities |  | 1 337 |  | 1 036 |
Tax payable |  | 100 |  | 436 |
Total liabilities |  | 1 793 |  | 1 841 |
Net assets |  | 16 893 |  | 17 001 |
Summarised income statement |  |  |  |  |
Turnover |  | 9 977 |  | 10 159 |
Depreciation and amortisation |  | (1 420 | ) | (1 190 | )
Other operating expenses |  | (5 039 | ) | (5 313 | )
Operating profit before interest and tax |  | 3 518 |  | 3 656 |
Finance income |  | 33 |  | 11 |
Finance cost |  | (3 | ) | (1 | )
Profit before tax |  | 3 548 |  | 3 666 |
Taxation |  | (607 | ) | (628 | )
Profit and total comprehensive income for the year |  | 2 941 |  | 3 038 |
The group’s share of profits of equity accounted investment |  | 1 131 |  | 1 168 |
49% share of profit before tax |  | 1 738 |  | 1 796 |
Taxation* |  | (607 | ) | (628 | )
Reconciliation of summarised financial information |  |  |  |  |
Net assets at the beginning of the year |  | 17 001 |  | 15 334 |
Profit before tax for the year |  | 3 548 |  | 3 666 |
Taxation* |  | (607 | ) | (628 | )
Foreign exchange differences |  | 490 |  | 839 |
Dividends paid |  | (3 539 | ) | (2 210 | )
Net assets at the end of the year |  | 16 893 |  | 17 001 |
Additional Sasol specific liabilities* |  | (79 | ) | (309 | )
Adjusted net assets at the end of the period |  | 16 814 |  | 16 692 |
Carrying value of equity accounted investment |  | 8 239 |  | 8 179 |
*With effect from 29 April 2017, as a result of change in tax regulations, tax is levied only on Sasol’s share of profits at a rate of 35%. The year-end for ORYX GTL Limited is 31 December, however the group uses the financial information at 30 June. The carrying value of the investment represents the group’s interest in the net assets thereof. Contingent liabilities There were no contingent liabilities at 30 June 2019 relating to our joint ventures or associates. Accounting policies: The financial results of associates and joint ventures are included in the group’s results according to the equity method from acquisition date until the disposal date. Under the equity method, investments in associates and joint ventures are recognised initially at cost. Subsequent to the acquisition date, the group’s share of profits or losses of associates and joint ventures is charged to the income statement as equity accounted earnings and its share of movements in equity reserves is recognised as other comprehensive income or equity as appropriate. A joint venture is a joint arrangement in which the parties have joint control with rights to the net assets of the arrangement. An associate is an entity, other than a subsidiary, joint venture or joint operation, in which the group has significant influence, but no control or joint control, over financial and operating policies. Associates and joint ventures whose financial year-ends are within three months of 30 June are included in the consolidated financial statements using their most recently audited financial results. Adjustments are made to the associates’ and joint ventures financial results for material transactions and events in the intervening period.

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- Definition The disclosure of investments accounted for using the equity method. [Refer: Investments accounted for using equity method] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2018-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2018-03-01&anchor=para_10_e&doctype=Standard -URIDate 2018-03-16 + Details
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