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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
124
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
3.
FINANCIAL RISKS continued
Market risk
Market risk is the risk that changes in market prices (interest rate and currency risk) will affect the
Group’s income or the value of its holding of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.
The Group is exposed to risks from movements in foreign exchange rates and interest rates that affect
its assets, liabilities and anticipated future transactions. The Group is not exposed to significant levels
of price risk.
Fair value estimation
Fair value measurement hierarchy:
•
•
Level 1: fair value based on quoted prices (unadjusted) in active markets for identical assets or
liabilities;
•
•
Level 2: fair value based on inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices); or
•
•
Level 3: fair value based on inputs for the asset or liability that are not based on observable market
data (that is, unobservable inputs).
Contingent consideration, included in trade and other payables, are level 3 financial liabilities.
Changes in level 3 instruments are as follows:
2014
R’000
Contingent consideration
Opening balance
22 607
3 030
Acquisition of Panacea Proprietary Limited
—
6 155
Acquisition of Retail Mobile Credit Specialists Proprietary
Limited
—
15 132
Acquisition of Viamedia Proprietary Limited
84 783
—
Acquisition of Supa Pesa Africa (Mauritius) Limited
29 851
—
Acquisition of Supa Pesa South Africa Proprietary Limited
100
—
Settlements
(19 515)
(1 800)
Gains or losses recognised in profit or loss
6 076
90
Closing balance
123 902
22 607
Total gains or losses for the period included in profit or loss for
liabilities held at the end of the reporting period, under:
Other income
(923)
(827)
Interest paid
6 999
917
Change in unrealised gains or losses for the period
included in profit or loss for liabilities held at the end of
the reporting period
2 052
917
2015
R’000