AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 11. Business Combinations – acquisition and disposal of SME Snapshot In July 2017 the Group acquired 100% of the equity and claims in SME Snapshot through the issue of shares in subsidiary YueDiligence. 18 new shares with a par value of R1 each were issued to Phezulu Group Close Corporation which is 15% of the equity control of YueDiligence to acquire control of the company. The acquisition is summarized below: Acquisition of SME Snapshot Proprietary Limited 65 2018 R'000 Intangible assets software developed at fair value 104 Liabilities to owner at fair value (352) Net liability acquired (248) Outside shareholders share of liability 15% of SME Snapshot NAV 37 Goodwill on acquisition 211 The goodwill was recognised at acquisition because of synergies that arose from including SME snapshot into the Group. Disposal of SME Snapshot Proprietary Limited On 1 March 2018 the group disposed of its investment in SME Snapshot in return for the 18 shares in YueDiligence. 2019 Assets and liabilities disposed R'000 Intangible assets software developed 242 Cash and cash equivalents 4 Trade and other receivables including (A) Phezula Note 9 471 Trade and other payables (298) Net liability disposed/acquired 419 Reversal of minority interest in SME Snapshot 114 Less equity accounted consideration see below (352) Loss on sale of subsidiary 181 The effect on equity can be reconciled as follows: Group 2019 2018 R'000 R'000 Consideration at fair value (352) 352 15% of Net Asset Value of YueDiligence at acquisition given up - 30 Outside shareholders share of liability 15% of SME Snapshot NAV - 37 (352) 419
AFDAWN AR FINAL 2019
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