Page 59 - annualreport2020

AFRICAN DAWN ANNUAL REPORT 2020

Notes to the Financial Statements continued
Annual Financial Statements For the year ended 29 February 2020

Assumptions for terminal value 2020 Note YueDiligence Elite
Compounded annual revenue increase % 6% 5%
Compounded annual total operating costs increase % 6% 5%
Pre-taxation discount rate (WACC Rate) 32.1% 22.1%

Assumptions for terminal value 2019 Note YueDiligence Elite
Compounded annual revenue increase % 6% 6%
Compounded annual total operating costs increase % 6% 5%
Pre-taxation discount rate (WACC Rate) 29.8% 17.9%

Testing for impairment Elite.

The recoverable amount of Elite was higher than the carrying value and therefore did not result in an impairment.

6. Deferred tax asset/deferred tax liability
Reconciliation of movement in dererred tax:

At beginning of year - 26 - -
Temporary difference income received in advance 41 - - -
Temporary difference on leave pay accrual 13 226 - -
Temporary difference on intangible assets 14 42 - -
Temporary difference on operating lease liability (1) 18
Temporary difference on ECL provision (878) (312)

Temporary difference right-of-use assets (474) -
Temporary difference lease payments 534
Temporary difference on assessed losses 751
- - - -

Deferred tax balances:

Deferred tax liabilities
Intangible assets (14) (28)
Operating lease liability - 1
Right-of-use assets (474) -
Deferred tax assets
Income received in advance 41 -

Leave pay accrual 244 231
Trade and other receivables loss allowance 1,333 2,212
Lease liability 534 -
Deferred tax asset not expected to be utilised (1,664) (2,416)
- - - -

Deferred tax assets amounting to R31,237,913 (2019:R30,156,139) for the group and R3,304,155 (2019:R2,398,979) for the company are not
recognized above in the light of the losses in the current and prior year.

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