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Integrated Report 2016
ANNUAL FINANCIAL STATEMENTS
(continued)
1.
CONTINUING OPERATIONS
2016
2015
R’000
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
ANNEXURE G – IMPAIRMENTS