ArcelorMittal South Africa 2007 Annual Report Page 106 Group Company

2007

Rm

2006

Rm

2007

Rm

2006

Rm

11.  NET INTEREST INCOME Bank deposit and other interest income excluding interest income from subsidiaries and equity accounted investments (note 12)

442

362

426

331

Interest income

442

362

426

331

Interest expense on bank overdrafts and loans

(20)

(14)

(16)

(2)

Interest expense on finance lease obligations⁽¹⁾

(53)

(54)

(25)

(25)

Discounting rate adjustment and unwinding of the discounting effect in the present valued carrying amount of the non- current provisions⁽²⁾

(44)

(101)

(48)

(101)

Finance costs

(117)

(169)

(89)

(128)

Net interest income

325

193

337

203

⁽¹⁾  Interest expense arising from the application of IAS 17, Leases, and IFRIC 4, Determining whether an Arrangement contains a Lease. (2)   The credit adjusted discount rate was increased from an average rate of 10,5% to 11,25% (2006: 9,3% to 10,5%) in line with changes in the South African risk free rate and the credit risk premium of the company. No borrowing costs qualified for capitalisation during the current or comparative year. 12.  INCOME FROM INVESTMENTS Dividends received

281

175

Interest received

4

7

4

7

4

7

285

182

13.  INCOME TAX EXPENSE Income tax recognised in profit or loss Tax expense comprises: Current tax expense

1 871

1 420

1 813

1 370

Adjustments recognised in the current year in relation to the current tax of prior years

(36)

71

(40)

71

1 835

1 491

1 773

1 441

Deferred tax expense relating to the origination and reversal of temporary differences

137

424

(191)

154

Deferred tax income recognised in the current year in relation to the deferred tax of prior years

1

(56)

1

(72)

138

368

(190)

82

Secondary Tax on Companies

482

163

446

158

Total tax expense

2 455

2 022

2 029

1 681

Notes to the group and company annual financial statements continued for the year ended 31 December 2007