AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 Opening balance Additions Impairment 58 4. Goodwill 2019 R’000 Cost Accumulated impairment Carrying amount Goodwill - - - 2018 R’000 Cost Disposal refer Note 11 Accumulated impairment Carrying amount Subsidiary Goodwill 211 (211) - Reconciliation of goodwill Group 2018 R’000 Opening balance Additions Impairment Disposal Closing balance Knife Capital 4,679 - (485) (4,194) - SME Snapshot - 211 (211) - - 4,679 211 (696) (4,194) - The SME Snapshot goodwill was derecognised during the year as part of the disposal of SME Snapshot refer to Note 11. Closing balance SME Snapshot - - - - - - - - - - Reconciliation of goodwill Group 2019 R’000 Goodwill impairment Impairment test for goodwill 2018 SME Snapshot was acquired during 2018 for 15% share of equity in YueDiligence in return for the underlying asset and liabilities which were included at fair value, which gave rise to goodwill. Based on the impairment test performed at 28 February 2018 the recoverable amount that was based on fair value less cost to sell was less than the carrying value which resulted in an impairment. The goodwill relating to Grindstone was impaired in 2018 as the Group lost control of 50% in terms of the Knife Capital Disposal .The fair value less cost to sell was a level 3 fair value, and it was based on the estimated proceeds on disposal. The movements are indicated below: 2018 R’ 000 Opening Additions Disposals Impairment Closing Knife Capital 3,736 - (3,736) - - Grindstone 943 - (458) (485) - SME Snapshot - 211 - (211) - 4,679 211 (4,194) (696) -
AFDAWN AR FINAL 2019
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