Page 67

AFRICAN DAWN Annual Report 2016

continued Notes to the Financial Statements Annual Financial Statements For the year ended 29 February 2016 5. Intangible assets (continued) Reconciliation of intangible assets - Group - 2015 Opening balance Additions through business combinations Amortisation Impairment Closing balance R ‘000 R ‘000 R ‘000 R ‘000 R ‘000 Micro finance software 1,489 - (342) - 1,147 Medical finance software 1,355 - (205) (1,150) - Contractual customer contracts on acquisition of Knife Capital Group - 6,543 (1,211) - 5,332 2,844 6,543 (1,758) (1,150) 6,479 Contractual customer contracts The intangible assets recognised on the acquisition of Knife Capital Group relate to contractual customer relationships and have a useful life of 3 to 6 years. Internally generated software The software is all internally generated and was specifically developed to support the unsecured and medical finance business models. Medical finance software with a cost of R- (2015: R 1,355 million) was under construction. It was brought into use in 2015 and then impaired. Elite decided to exit the medical finance business with the result that the carrying amount of the medical finance software (R1,150 million) exceeded the recoverable amount of nil. An impairment loss of R1,150 million was therefore recognised in operating expenses. The impairment of the intangible asset relates to the Micro finance segment. The carrying amount and remaining useful life of material intangible assets is as follows: Intangible assets Carrying amount 2016 Remaining amortisation R ‘000 period R ‘000 period Carrying amount 2015 Remaining amortisation Micro finance software 845 36 months 1,147 48 months Branded education 499 13 months 960 25 months GAP self-assessment and intervention tools 2,376 49 months 2,958 61 months Fund management agreements 1,136 49 months 1,414 61 months Yuediligence 299 36 months - 5,155 - 6,479 - AFRICAN DAWN ANNUAL REPORT 2016 65


AFRICAN DAWN Annual Report 2016
To see the actual publication please follow the link above