| |
2020 |
2019 |
| Figures in Rand thousand |
Cost |
|
Accumulated
amortisation
and
impairments |
|
Carrying
value |
|
Cost |
|
Accumulated
amortisation
and
impairments |
|
Carrying
value |
|
| Contracts purchased |
90 858 |
|
(90 324) |
|
534 |
|
109 148 |
|
(101 847) |
|
7 301 |
|
|---|
| Customer relationships |
267 331 |
|
(226 367) |
|
40 964 |
|
345 273 |
|
(266 657) |
|
78 616 |
|
|---|
| Intellectual property |
172 727 |
|
(133 194) |
|
39 533 |
|
175 513 |
|
(123 423) |
|
52 090 |
|
|---|
| Internally generated software |
590 468 |
|
(320 113) |
|
270 355 |
|
520 214 |
|
(273 270) |
|
246 944 |
|
|---|
| Computer software |
423 299 |
|
(364 005) |
|
59 294 |
|
408 747 |
|
(338 912) |
|
69 835 |
|
|---|
| Other intangible assets |
245 396 |
|
(197 788) |
|
47 608 |
|
241 813 |
|
(157 937) |
|
83 876 |
|
|---|
| Closing balance before Assets held for sale |
1 790 079 |
|
(1 331 791) |
|
458 288 |
|
1 800 708 |
|
(1 262 046) |
|
538 662 |
|
|---|
| Assets held for sale (note 14) |
(723 145) |
|
377 824 |
|
(345 321) |
|
(196 108) |
|
146 420 |
|
(49 688) |
|
|---|
| Closing balance |
1 066 934 |
|
(953 967) |
|
112 967 |
|
1 604 600 |
|
(1 115 626) |
|
488 974 |
|
|---|
Reconciliation of intangible assets
| Figures in Rand thousand |
Opening
balance |
|
Additions |
|
Disposals |
|
Transfers |
|
Foreign
currency
translation |
|
Amortisation |
|
Impairments |
|
Disposals
of
business |
|
Total
including
assets held
for sale |
|
Assets
held
for sale
(note 14) |
|
Total |
|
|---|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|---|
| Contracts purchased |
7 301 |
|
– |
|
– |
|
– |
|
1 706 |
|
(3 430) |
|
(142) |
|
(4 901) |
|
534 |
|
(142) |
|
392 |
|
|---|
| Customer relationships |
78 616 |
|
– |
|
– |
|
– |
|
– |
|
(13 548) |
|
(10 348) |
|
(13 756) |
|
40 964 |
|
(14 340) |
|
26 624 |
|
|---|
| Intellectual property |
52 090 |
|
– |
|
– |
|
– |
|
758 |
|
(9 771) |
|
– |
|
(3 544) |
|
39 533 |
|
(20 606) |
|
18 927 |
|
|---|
| Internally generated software |
246 944 |
|
91 867 |
|
(3 493) |
|
(592) |
|
(1 963) |
|
(45 931) |
|
(4 331) |
|
(12 146) |
|
270 355 |
|
(251 776) |
|
18 579 |
|
|---|
| Computer software |
69 835 |
|
47 918 |
|
(15 065) |
|
(1 968) |
|
12 071 |
|
(49 567) |
|
– |
|
(3 930) |
|
59 294 |
|
(16 863) |
|
42 431 |
|
|---|
| Other intangible assets |
83 876 |
|
47 387 |
|
– |
|
2 560 |
|
(17 837) |
|
(39 832) |
|
(11 354) |
|
(17 192) |
|
47 608 |
|
(41 594) |
|
6 014 |
|
|---|
|
| 538 662 |
|
187 172 |
|
(18 558) |
|
– |
|
(5 265) |
|
(162 079) |
|
(26 175) |
|
(55 469) |
|
458 288 |
|
(345 321) |
|
112 967 |
|
|---|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | Contracts purchased | 35 771 |
|
– |
|
– |
|
– |
|
– |
|
(13 612) |
|
(10 217) |
|
(4 641) |
|
7 301 |
|
(2 021) |
|
5 280 |
|
| Customer relationships | 212 817 |
|
– |
|
– |
|
– |
|
185 |
|
(42 152) |
|
(79 227) |
|
(13 007) |
|
78 616 |
|
(20 125) |
|
58 491 |
|
| Intellectual property | 83 645 |
|
– |
|
– |
|
(1 827) |
|
294 |
|
(19 118) |
|
(10 904) |
|
– |
|
52 090 |
|
(1 846) |
|
50 244 |
|
| Internally generated software | 301 987 |
|
96 268 |
|
– |
|
57 745 |
|
(5 522) |
|
(64 747) |
|
(25 596) |
|
(113 191) |
|
246 944 |
|
(8 431) |
|
238 513 |
|
| Computer software | 166 321 |
|
48 973 |
|
(20 549) |
|
(63 171) |
|
43 |
|
(59 275) |
|
(2 507) |
|
– |
|
69 835 |
|
(3 699) |
|
66 136 |
|
| Other intangible assets | 79 851 |
|
41 183 |
|
– |
|
7 253 |
|
30 |
|
(32 064) |
|
(7 143) |
|
(5 234) |
|
83 876 |
|
(13 566) |
|
70 310 |
|
| 880 392 |
|
186 424 |
|
(20 549) |
|
– |
|
(4 970) |
|
(230 968) |
|
(135 594) |
|
(136 073) |
|
538 662 |
|
(49 688) |
|
488 974 |
|
Impairments to intangible assets largely relate to:
- Customer relationships and customer contracts that were impaired for R10 million after the profitability of the related relationships and contracts deteriorated below expected levels.
- The remaining impairments of R16 million relate to other internally generated software and other intangibles in a number of underperforming CGUs in which goodwill impairments have also been recognised.
Impairment testing
The Group performed a review of intangible assets for impairment, which highlighted impairments of R26 million (2019: R135 million). For the purpose of impairment testing, intangible assets were allocated, together with goodwill, 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. Note 6 further discusses the impairments, including key assumptions, estimates and sensitivities in relation to the testing performed. |