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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued Reconciliation of intangible assets - Group - 2014 Opening balance Additions Amortisation AFRICAN DAWN 73 ANNUAL REPORT 2015 Closing balance R ‘000 R ‘000 R ‘000 R ‘000 Micro finance software 819 881 (211) 1,489 Medical finance software 973 382 - 1,355 1,792 1,263 (211) 2,844 Reconciliation of intangible assets - Group - 2013 Opening balance Additions Amortisation Closing balance R ‘000 R ‘000 R ‘000 R ‘000 Micro finance software - 829 (10) 819 Medical finance software - 973 - 973 - 1,802 (10) 1,792 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 1,355,165 (2014: R 1,355,165) was under construction. It was brought into use in the current year and then impaired. Elite decided to exit the medical finance business with the result that the carrying amount of the medical finance software (R1 150 000) exceeded the recoverable amount of nil. An impairment loss of R1 150 000 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 2015 Remaining amortisation period Carrying amount 2014 Remaining amortisation R ‘000 R ‘000 period Micro finance software 1,147 48 months 1,489 60 months Medical finance software - 1,355 Not in use as yet Branded education 960 25 months - GAP self-assessment and intervention tools 2,958 61 months - Fund management agreements 1,414 61 months - 6,479 - 2,844 - 5. Intangible assets (continued)


AFRICAN DAWN 2015 Annual Report
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