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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
125
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
4.
Non-financial instruments
continued
4.1 Goodwill continued
Critical accounting estimates and assumptions
Assessment of goodwill for impairment
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy.
The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These
calculations require the use of estimates.
2016
R’000
2015
R’000
Year ended 31 May
Opening carrying amount
606 609
423 384
Acquisition of subsidiary
—
185 967
Disposal of subsidiary
(3 169)
(2 742)
Closing carrying amount
603 440
606 609
At 31 May
Cost
615 568
618 737
Accumulated impairments
(12 128)
(12 128)
Carrying amount
603 440
606 609
The carrying amount of goodwill and intangible assets was reduced to their recoverable amounts through recognition
of an impairment loss when required 2016: nil (2015: nil).
The cash-generating units to which goodwill is allocated are presented below:
2016
R’000
2015
R’000
Blue Label Distribution Proprietary Limited
36 364
36 364
Cellfind Proprietary Limited
21 406
21 406
Viamedia Proprietary Limited
185 967
185 967
Blue Label Connect Proprietary Limited*
205 749
205 749
The Prepaid Company Proprietary Limited
62 113
62 113
Panacea Mobile Proprietary Limited
6 883
6 883
TicketPros Proprietary Limited
5 104
5 104
Datacel Group**
79 854
83 023
603 440
606 609
* Formerly known as Retail Mobile Credit Specialists Proprietary Limited.
**Velociti Proprietary Limited, a wholly owned subsidiary of Datacel, was disposed of during the year. Refer to note 2.2.