135 / 248
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
133
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
5.
INTANGIBLE ASSETS AND GOODWILL continued
The discount rates used are pre-tax and reflect specific risks relating to the relevant companies.
The growth rate is used to extrapolate cash flows beyond the budget period.
For The Prepaid Company Proprietary Limited and TicketPros Proprietary Limited if one or more of the
inputs were changed to a reasonable possible alternative assumption, there would be no impairments
that would have to be recognised.
For the remaining balances of goodwill, the discount rate used when calculating the value-in-use
calculations would need to be increased by the following amounts before any impairments would
need to be recognised:
Blue Label Distribution Proprietary Limited
7.3
Cellfind Proprietary Limited
1.7
Viamedia Proprietary Limited
3.8
Retail Mobile Credit Specialists Proprietary Limited
11.1
Panacea Mobile Proprietary Limited
15.3
Datacel Group
6.7
The goodwill balances did not result in impairment charges for the year when compared to
recoverable amounts (2014: nil).
2014
R’000
6.
INVESTMENTS IN AND LOANS TO ASSOCIATES AND JOINT
VENTURES
Cost and share of reserves at the beginning of the year
444 309
396 721
Acquisition of associates and joint ventures
81 475
89 316
Share of losses from associates and joint ventures
(79 338)
(56 873)
Share of results after tax
(75 745)
(53 558)
Amortisation of intangible assets
(4 990)
(4 604)
Deferred tax on intangible assets amortisation
1 397
1 289
Foreign currency translation reserve
(10 497)
26 099
Equity compensation benefit
548
164
Dividends received
(1 388)
(11 118)
Disposal of associate
(93 623)
—
Cost and share of reserves at the end of the year
341 486
444 309
Loans at the beginning of the year
153 800
127 441
Loans granted to associates and joint ventures
77 601
99 217
Loan granted to joint venture capitalised
(50 033)
(89 316)*
Unrealised foreign exchange profit on loans to associates and
joint ventures
25 718
16 458
Loans at the end of the year
207 086
153 800
Closing net book value
548 572
598 109
* On 10 September 2013, a loan of R85.8 million was advanced to Blue Label Mexico S.A. de C.V. (BLM). This loan was
capitalised on 18 December 2013. The difference of R3.5 million relates to foreign exchange movements.
Increase in
discount
rate
%
2015
R’000