Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 118 INTERFRONT ANNUAL REPORT 2023 Notes to the Financial Statements Figures in Rand 2023 2022  Deferred tax Deferred tax liability Deferred tax 3 557 120 81 579 Reconciliation of deferred tax asset/(liability) At the beginning of the year 81 579 (2 146 366) Temporary difference on prepayments (12 933) 24 714 Temporary difference on tangible fixed assets 223 097 (136 628) Movement in provision and accruals 1 893 593 838 497 Reversing temporary difference on finance lease – – Originating temporary difference on operating lease (18 095) 34 827 Reversing temporary difference on intellectual property 1 389 879 1 389 879 Reduction in the opening balance due to rate change – 76 656 3 557 120 81 579  Operating lease asset (liability) Non‑current liabilities (528 604) (831 409) Current liabilities (302 805) (67 018) (831 409) (898 427) Operating leases represent rentals payable by the entity for its office premises. The office leases were for an initial period of 5 years with an annual rental escalation of 7%,and an expiry date of 31 August 2024. During the prior year an addendum was signed to extend the initial period of the lease over the St Andrews offices by a further 2 years with more favourable rental escalations. The office leases contain an option to extend the leases after the initial period by a further 5 years.  Payables from exchange transactions Trade payables 1 290 492 1 192 499 Accrued leave pay 6 009 283 3 193 216 PAYE payable 3 052 917 1 860 891 Other accruals 2 017 877 287 819 Revenue billed in advance 4 293 201 7 381 401 16 663 770 13 915 826 Payables are carried at invoice amounts, which approximates fair value due to their short‑term nature. Revenue billed in advance relates to services to be provided to our customers for which we have already received payment.