Annexure G: Impairments

1.	CONTINUING OPERATIONS

			2016 R’000	2015 R’000
A.	OTHER INTANGIBLES
	The trademark impaired relates to the following brand:
	Reportable segment	Brand
	Prescription	Prelone	3 149	–
	Volumes and pricing for this product are under pressure and consequently forecast profitibility has been reduced.
B.	INVENTORIES
	Reportable segment	Category
	Prescription	ARV’s	–	(8 375)
	Due to the high inventory levels in the market at the end of 2014, the probability of sales of certain products became remote, particularly when coupled with a short-term expiry date. Following the sale of a portion of these products in the prior year, part of the provision was reversed.
C.	OTHER
	Reportable segment	Asset
	Southern Africa	Other financial assets – Black Managers Share Trust (BMT)	4 135	6 336
	Southern Africa	Other debtors	1 354	–
			5 489	6 336
	As a result of the on-distribution of dividend income, in the accounts of the corporate beneficiaries of the BMT share option scheme, the cost of the capital contributions exceeded the terminal amount at both reporting years. This required an impairment of this asset. The Bophelo Trust’s investment in Ad-Izinyosi was higher than its 20% share of the assets, leading to R1.4 million impairment of the investment in the Bophelo accounts.
	TOTAL		8 638	(2 039)
2.	DISCONTINUED OPERATIONS
A.	AYRTON DRUG MANUFACTURING LIMITED (GHANA)
	Impairment of assets transferred to held-for sale		72 959	–
	Property, plant and equipment		–	7 390
			72 959	7 390
	Assets held-for-sale were impaired in the current year, after comparing the pre-impairment carrying value of the business’ net assets against the fair value less cost to sell based on the latest estimated proceeds on the sale of the Group’s controlling interest in this business. The recoverable amount, based on a value in use, of certain plant and equipment in the Ghanaian production facility reduced in the prior year which required an impairment.
B.	ADCOCK INGRAM HEALTHCARE PRIVATE LIMITED (INDIA)
	Impairment of assets transferred to held-for sale		135 012	–
	Other intangibles		–	74 432
			135 012	74 432
	Assets held-for-sale were impaired in the current year, after comparing the pre-impairment carrying value of the business’ net assets against the fair value less cost to sell based on the latest estimated proceeds on the sale of the Group’s interest in this business. During the prior year, the recoverable amount of certain intangibles in the Cosme business in India reduced due to the performance in that business which required an impairment.
	Total		207 971	81 822