Notes to the Group annual financial statements | Note 4.3

4. Non-financial instruments
4.3 Property, plant and equipment
 

Property, plant and equipment is initially recorded at historical cost, being the purchase cost plus any cost to prepare the assets for their intended use. Historical cost includes expenditure that is directly attributable to the acquisition of the item. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the income statement during the financial year in which they are incurred.

Property, plant and equipment is subsequently carried at historical cost less accumulated depreciation and any accumulated impairment losses.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at year-end. Where the asset's residual value is higher than the carrying value, no depreciation is provided.

Gains and losses on disposal of property, plant and equipment are determined as the difference between the carrying amount and the fair value of the sale proceeds, and are included in operating profit.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

Depreciation is calculated on the straight-line basis to write off the cost of the assets to their residual values over their estimated useful lives as follows:

Computer equipment 25% – 33.3%
Furniture, fittings and office equipment 16.67% – 25%
Motor vehicles 20% – 25%
Terminals and vending machines 16.67%
Buildings 8.33%

Major leasehold improvements are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Computer 
equipment 
R'000 		 Furniture, 
fittings 
and office 
equipment 
R'000 		 Motor 
vehicles 
R'000 		 Leasehold 
improve- 
ments 
R'000 		 Terminals 
and 
vending 
machines 
R'000 		 Buildings 
R'000 		 Total 
R'000 
Year ended 31 May 2022  
Opening carrying amount   74 394  11 504  16 456  11 994  75 746  4 099  194 193 
Additions   11 585  3 746  20 163  1 108  41 211  –  77 813 
Disposals   (1 081) (76) (2 290) (657) (4 306) –  (8 410)
Depreciation charge  (22 383) (4 150) (6 442) (4 412) (27 316) –  (64 703)
Impairments*   –  –  –  –  (3 580) –  (3 580)
Closing carrying amount   62 515  11 024  27 887  8 033  81 755  4 099  195 313 
At 31 May 2022  
Cost   130 732  21 899  43 643  52 700  178 488  4 099  431 561 
Accumulated depreciation   (68 217) (10 875) (15 756) (44 667) (89 762) –  (229 277)
Accumulated impairments   –  –  –  –  (6 971) –  (6 971)
Carrying amount   62 515  11 024  27 887  8 033  81 755  4 099  195 313 
Year ended 31 May 2021  
Opening carrying amount   78 068  9 963  17 505  12 677  76 376  4 099  198 688 
Additions   23 539  5 544  8 129  3 584  30 418  –  71 214 
Acquisition of subsidiary   20  –  –  –  –  –  20 
Disposals   (15) (193) (2 891) –  –  –  (3 099)
Depreciation charge - continuing operations   (27 176) (3 759) (6 262) (4 267) (25 582) –  (67 046)
Depreciation charge - discontinued operations   –  –  (25) –  –  –  (25)
Impairments*   (42) (51) –  –  (5 466) –  (5 559)
Closing carrying amount   74 394  11 504  16 456  11 994  75 746  4 099  194 193 
At 31 May 2021  
Cost   189 383  55 858  30 692  106 898  190 914  4 099  577 844 
Accumulated depreciation   (106 424) (32 349) (14 236) (57 076) (103 206) –  (313 291)
Accumulated impairments   (8 565) (12 005) –  (37 828) (11 962) –  (70 360)
Carrying amount   74 394  11 504  16 456  11 994  75 746  4 099  194 193 
* Impairments of property, plant and equipment are included in depreciation and amortisation on the Group income statement.

There are no property, plant and equipment assets that are encumbered.

The residual values of buildings are estimated to be higher than the carrying value and therefore there is no depreciation charge.