LENMED AIR 2019.pdf

Cost Accumulated amortisation 2019 Carrying value 11. Intangible assets Computer Software 29 028 4 934 24 094 Licences 2 479 - 2 479 31 507 4 934 26 573 Carrying value at beginning of year Additions/ transfers Depreciation Carrying value at end of year 2019 Computer Software 16 490 12 538 (4 934) 24 094 Licences 2 479 – – 2 479 18 969 12 538 (4 934) 26 573 2018 Computer Software – 16 490 – 16 490 Licences – 2 479 – 2 479 – 18 969 – 18 969 Intangibles are valued as per note 3.15 and tested annually for impairment. The estimation of the indefinite useful life of licences is based on historic performance as well as expectations about future use. Software relates to the Group’s deployment of SAP software at it’s various facilities. The recoverable amount is determined by projecting a future cash flow expected to be generated by the intangible asset. The present value of these cash flows is determined using an appropriate discount rate. Group Figures in R’000 2019 Restated 2018 12. Investment in associates The Group’s investment in Lenasia Renal Care (Pty) Ltd and Renal Care Holdings (Pty) Ltd are accounted for under the equity method of accounting. Lenasia Renal Centre (Pty) Ltd. The Group owns 30% of Lenasia Renal Care Centre (Pty) Ltd, a renal dialysis unit situated adjacent to Ahmed Kathrada Private Hospital. Opening balance 4 420 4 071 Share of associate earnings 551 799 Dividends received (2 400) (450) CLOSING BALANCE 2 571 4 420 Renal Care Holdings (Pty) Ltd The Group owns 40% of Renal Care Holdings (Pty) Ltd, a renal dialysis holding company. Opening balance 1 187 358 Share of associate earnings 1 299 829 Dividends received (560) - CLOSING BALANCE 1 926 1 187 TOTAL INVESTMENT IN ASSOCIATES 4 497 5 607 The directors are of the opinion that the fair value of the above investments exceeds its carrying value. LENMED ANNUAL INTEGRATED REPORT 2019 107