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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
6.
Investments in Group companies and related loans
continued
6.2 Investments in and loans to joint ventures and associates
The company accounts for investments in associates and joint ventures at cost less any accumulated impairment.
2017
R’000
2016
R’000
Investments in and loans to joint ventures and associates
Shares as at the beginning of the year
346 829
304 175
Acquisition of joint venture and associate
12 046
42 654
Shares as at the end of the year
358 875
346 829
There was no impairment of investment in joint ventures and associates. Where impairment testing was performed,
the terminal growth rate applied was 3.5% (2016: 3.5%) and the weighted average cost of capital used to discount
the cash flows was 15.52% (2016: 16.44%). The discount rates used are post-tax and reflect specific risks relating to
the relevant companies.
If one or more of the inputs were changed to a reasonable possible alternative, there would be no impairments that
would have to be recognised. Refer to note 2.1 of the Group annual financial statements.
Shares in associate acquired during the current year:
Date
acquired
Country of
incorporation
Percentage
interest
acquired
Utilities World Proprietary Limited
Associate 1 June 2016
South Africa
25.1
Refer to note 2.1 of the Group financial statements for details of other associates held directly by the Company.
Notes
to the Company annual financial statements
continued
For the year ended 31 May 2017