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2015

RCS GROUP CONSOLIDATED FINANCIAL STATEMENTS

33

9.

Intangible Assets (continued)

Reconciliation of carrying amounts:

Carrying amount at

Additions/

Carrying amount

beginning of period

transfers

Disposals

Amortisation at end of period

31 December 2015

R’000

R’000

R’000

R’000

R’000

Computer software

25 434

7 352

(8 664)

24 122

25 434

7 352

(8 664)

24 122

31 March 2015

Client lists

5

(5)

Computer software

22 819

14 571

(11 956)

25 434

22 824

14 571

(11 961)

25 434

31 December 2015

31 March 2015

R’000

R’000

10.

Goodwill

Goodwill

56 855

56 855

Goodwill acquired through business combinations has been allocated to three individual cash-generating units:

31 December 2015

31 March 2015

R’000

R’000

Cash-generating unit

General Purpose Card Division

12 917

12 917

Personal Loan Division

36 481

36 481

MDD Private Label Card Division

7 457

7 457

56 855

56 855

Goodwill is tested annually for impairment and once there is an indication of impairment. The recoverable amount of the cash-

generating units are based on the higher of the value in use, determined by a calculation which covers a five-year period, or the

fair value less costs to sell. The cash flows have been discounted at a rate of 11% (31 March 2015: 11%). Significant assumptions

applied when reviewing the goodwill impairment are that future profits were estimated using historical information and

approved budgets, anticipated growth in advances or turnover and expectations of future interest rates.

Based on this assessment management is of the opinion that for all of the cash-generating units the value in use exceeds the

carrying amount and therefore no impairment is recognised.

NotestotheConsolidatedFinancialStatements

(continued)

for the period ended 31 December 2015