AVBOB Financial Statements 2018

114 AVBOB MUTUAL ASSURANCE SOCIETY AND ITS SUBSIDIARIES NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 (continued) 16. RELATED PARTY TRANSACTIONS The following entities are deemed to be related parties: Purchase of goods and services SOCIETY 2018 2017 R 000 R 000 Inter-company sales To AVBOB Funeral Service Limited 922 983 From AVBOB Funeral Service Limited 195 429 157 817 Property rentals To AVBOB Funeral Service Limited 23 464 17 448 Inter-company administration cost AVBOB Funeral Service Limited 37 042 33 553 AVBOB Funeral Service Limited 4 437 3 911 Inter-company salaries AVBOB Funeral Service Limited 42 650 44 927 Receivable from/(payable to) related parties: AVBOB Funeral Service Limited - loan - 16 300 AVBOB Funeral Service Limited - trade payable 7 892 - AVBOB Namibia Holdings (Proprietary) Limited - long-term loan 3 963 4 376 AVBOB Namibia Holdings (Proprietary) Limited - trade payable ( 2) - AVBOB Namibia (Proprietary) Limited - trade payable ( 56) ( 8) 11 797 20 668 AVBOB Mutual Assurance Society pays AVBOB Funeral Service Limited a 2.8% commission for the collection of insurance premiums on a monthly basis. Numerous transactions occurred between fellow subsidiaries of the holding entity, AVBOB Mutual Assurance Society, during the year. These transactions were conducted on the same terms as would apply to third parties. All transactions between fellow subsidiaries and the holding entity were eliminated for consolidation purposes. Commission paid for premium collection AVBOB Mutual Assurance Society invoices AVBOB Funeral Service Limited on a monthly basis for administration expenses incurred in respect of the Group's head office and provincial structure. AVBOB Mutual Assurance Society charges AVBOB Funeral Service Limited for salaries and salary related expenses rendered to AVBOB Funeral Service Limited on a monthly basis. AVBOB Funeral Service Limited, AVBOB Industries Limited and AVBOB Namibia Holdings (Proprietary) Limited are wholly-owned subsidiaries of AVBOB Mutual Assurance Society. AVBOB Namibia Holdings (Proprietary) Limited owns 53% (2017: 53%) of the issued shares of AVBOB Namibia (Proprietary) Limited. 114