| |
2019 |
|
Restated* 2018 |
|
| Figures in Rand thousand |
Cost |
Accumulated
amortisation
and
impairment |
Carrying
value |
|
Cost |
Accumulated
amortisation
and
impairment |
Carrying
value |
|
| Contracts purchased |
109 148 |
(101 847) |
7 301 |
|
143 958 |
(108 186) |
35 772 |
|
| Customer relationships |
345 273 |
(266 657) |
78 616 |
|
392 713 |
(179 896) |
212 817 |
|
| Intellectual property |
175 513 |
(123 423) |
52 090 |
|
177 288 |
(93 643) |
83 645 |
|
| Internally generated software* |
520 214 |
(273 270) |
246 944 |
|
1 009 281 |
(707 294) |
301 987 |
|
| Computer software* |
408 747 |
(338 912) |
69 835 |
|
520 057 |
(353 735) |
166 322 |
|
| Other intangible assets |
241 813 |
(157 937) |
83 876 |
|
103 185 |
(23 336) |
79 849 |
|
| Current assets held for sale (note 15) |
(196 108) |
146 420 |
(49 688) |
|
– |
– |
– |
|
| |
1 604 600 |
(1 115 626) |
488 974 |
|
2 346 482 |
(1 466 090) |
880 392 |
|
| Figures in Rand thousand |
Opening
balance |
Additions |
Additions
through
business
combinations |
Disposals |
Transfers |
Foreign
currency
translation |
Amortisation |
Impairments |
Disposals
of
businesses** |
Current
assets held
for sale
(note 15) |
Closing
balance |
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
| Contracts purchased |
35 771 |
– |
– |
– |
– |
– |
(13 612) |
(10 217) |
(4 641) |
(2 021) |
5 280 |
|
| Customer relationships |
212 817 |
– |
– |
– |
– |
185 |
(42 152) |
(79 227) |
(13 007) |
(20 125) |
58 491 |
|
| Intellectual property |
83 645 |
– |
– |
– |
(1 827) |
294 |
(19 118) |
(10 904) |
– |
(1 846) |
50 244 |
|
| Internally generated software |
301 987 |
96 268 |
– |
– |
57 745 |
(5 522) |
(64 747) |
(25 596) |
(113 191) |
(8 431) |
238 513 |
|
| Computer software |
166 321 |
48 973 |
– |
(20 549) |
(63 171) |
43 |
(59 275) |
(2 507) |
– |
(3 699) |
66 136 |
|
| Other intangible assets |
79 851 |
41 183 |
– |
– |
7 253 |
30 |
(32 064) |
(7 143) |
(5 234) |
(13 566) |
70 310 |
|
| |
880 392 |
186 424 |
– |
(20 549) |
– |
(4 970) |
(230 968) |
(135 594) |
(136 073) |
(49 688) |
488 974 |
|
| Restated* 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
| Contracts purchased |
87 278 |
– |
23 165 |
(37 310) |
– |
– |
(37 362) |
– |
– |
– |
35 771 |
|
| Customer relationships |
294 642 |
– |
71 075 |
(115 414) |
– |
518 |
(38 004) |
– |
– |
– |
212 817 |
|
| Intellectual property |
321 691 |
139 |
2 950 |
(224 742) |
1 562 |
306 |
(18 261) |
– |
– |
– |
83 645 |
|
| Internally generated software* |
488 668 |
175 050 |
2 401 |
(7) |
110 925 |
1 328 |
(91 960) |
(384 418) |
– |
– |
301 987 |
|
| Computer software* |
142 604 |
161 403 |
361 |
(9 393) |
(55 523) |
– |
(72 719) |
(412) |
– |
– |
166 321 |
|
| Other intangible assets |
114 413 |
– |
41 849 |
(3 794) |
(56 964) |
(2 577) |
(4 412) |
(8 664) |
– |
– |
79 851 |
|
| |
1 449 296 |
336 592 |
141 801 |
(390 660) |
– |
(425) |
(262 718) |
(393 494) |
– |
– |
880 392 |
|
| * |
Refer to note 3 for further information regarding the restatement of the prior year. |
| ** |
The disposals for 2018 includes the GCT intangibles of R374 million. |
Impairments to intangible assets largely relate to:
- Customer relationships and customer contracts were impaired for R107 million after the profitability of the related relationships and contractsdeteriorated below expected levels.
- The remaining impairments relate to other internally generated software in a number of underperforming CGUs in which goodwill impairmentshave also been recognised of R28 million.
The Group performed a review of intangible assets for impairment, which highlighted impairments of R135 million (R88 million in the iOCO segment, R45 million in the NEXTEC segment and R2 million in the IP segment).
For the purpose of impairment testing, intangible assets were allocated to the Group’s CGUs. The recoverable amount of these CGUs were determined based on value-in-use calculations, discounting future cash flows expected to be generated. Impairment tests on assets held for sale were based on fair value less costs of disposal.
A pre-tax weighted-average cost of capital of 19% – 24,1% (2018: 17,7% – 20,4%) was used in discounting the projected cash flows.
|