| | | 7 | Other expenses net | | |
| (56) | 75 | | Foreign exchange loss/(gain) – net (a) | 10 | (14) |
| 100 | (16) | | Bad debts provision (credit)/expense (b) | (2) | 11 |
| 31 | 29 | | Bad debts written off (b) | 4 | 3 |
| 26 | (30) | | Other (income)/expenses – net | (4) | 3 |
| 101 | 58 | | Total other expenses – net | 8 | 3 |
| | | | (a) | (i) | During the 2010 financial year, foreign exchange losses relating to the Australasia intercompany loans amounting to R93 million (US$12.2 million) (2009: loss of R201 million (US$22.3 million) were recognised in the consolidated income statement. | | |
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| | | | | | During the 2008 financial year, two intercompany loans, previously designated as forming part of the net investment of the group’s international operations, were de-designated, mainly as a result of the expected repayment of these loans. In accordance with the group’s accounting policies, accumulated exchange gains that arose while the loans were considered to form part of the group’s net investment in its international operations remain in equity and are only reclassified to the consolidated income statements as and when the loans are repaid. The repayment of these loans resulted in an exchange gain of R418 million (US$53.1 million) being recognised in the consolidated income statement in the 2009 financial year. Following the adoption of the amendment to IAS 21 –
The Effects of Changes in Foreign Exchange Rates on 1 July 2009, the remaining accumulated exchange reserves relating to these de-designated loans will remain in equity until the Australian and/or PNG operations are sold, or control is otherwise lost. | | |
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| | | | | (ii) | In the 2010 financial year, foreign exchange gains amounting to R22 million (US$2.9 million) were realised on the liquidation of Harmony Gold Peru SA and Harmony Precious Metal Services SAS, wholly owned subsidiaries of Harmony. | | |
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| | | | | (iii) | During the 2009 financial year, foreign exchange losses of R292 million (US$30.0 million) were recognised relating to the exchange movements on the US$ denominated Pamodzi Resources Fund 1 LLP (PRF) loan for the Cooke transaction. Refer to note 21 for further detail. | | |
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| | | | | | In anticipation of the receipt of the purchase consideration for the Cooke assets, the group arranged a forward exchange contract, allowing the group to sell the proceeds at R10.27 per US$1 on 21 April 2009. The gain on this arrangement was R205 million (US$21.1 million). | | |
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| | | | (b) | In the 2010 financial year, trade debt and loans of R29 million (US$3.8 million) (2009: R31 million (US$3.4 million)) were written off as the group considered the debts irrecoverable. During 2010 a net credit to the doubtful debt provision of R16 million (US$2.1 million) was recorded, where debt was no longer considered doubtful. During the 2009 financial year a provision of R100 million (US$11.2 million) was made where the group considered the recoverability of the debts to be doubtful. Refer to note 24. | | |