152 / 280
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
150
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
Goodwill
R’000
Trademarks
R’000
Customer
listing
R’000
5.
INTANGIBLE ASSETS
Year ended 31 May 2014
Opening carrying amount
217 635
1 975
1 482
Additions
—
—
159
Acquisition of subsidiary
205 749
—
—
Disposals
—
—
—
Amortisation charge
—
(677)
(610)
Impairment charges
—
—
—
Closing carrying amount
423 384
1 298
1 031
At 31 May 2014
Cost
454 250
6 835
33 306
Accumulated amortisation
(4 746)
(5 537)
(32 275)
Accumulated impairments
(26 120)
—
—
Carrying amount
423 384
1 298
1 031
Year ended 31 May 2013
Opening carrying amount
213 498
2 730
1 967
Additions
—
8
330
Acquisition of subsidiary
14 729
—
—
Disposals
(10 592)
(76)
—
Amortisation charge
— (687)
(815)
Impairment charges
—
—
—
Closing carrying amount
217 635
1 975
1 482
At 31 May 2013
Cost
248 501
6 835
33 147
Accumulated amortisation
(4 746)
(4 860)
(31 665)
Accumulated impairments
(26 120)
—
—
Carrying amount
217 635
1 975
1 482
* Included in the amortisation charge is an amount of R70 million (2013: R51 million) in respect of the purchased starter pack bases
and postpaid bases, which is charged to the changes in inventories of finished goods line in the statement of comprehensive
income.
** The postpaid base acquired included a warranty clause pertaining to the initial performance of the base. During the year, the
Group was entitled to a warranty refund on the initial cost of the base, which is disclosed as a reduction in the cost of the asset.
*** This represents independently distributed starter pack bases and postpaid bases purchased during the prior year. The
remaining amortisation periods range between 31 months and 103 months.
The carrying amount of goodwill and intangible assets have been reduced to their recoverable amounts
through recognition of an impairment loss when required.