NOTES TO THE FINANCIAL STATEMENTS l NOTE 9 |
|
|
|
GROUP
June 2014
R000 |
|
GROUP
June 2013
R000 |
|
COMPANY
June 2014
R000 |
|
COMPANY
June 2013
R000 |
|
Goodwill arising on acquisition |
|
|
|
|
|
|
|
|
Word4Word Marketing (Proprietary) Limited |
12 059 |
|
12 059 |
|
|
|
|
|
Impairment — current year |
(7 779) |
|
|
|
|
|
|
|
Balance |
4 280 |
|
12 059 |
|
|
|
|
|
The group tests goodwill annually for impairments.
The valuation of Word4Word Marketing (Proprietary) Limited was determined using the discounted cash flow method over five years
and was based on the following key inputs and assumptions:
|
Budgets and forecasts prepared by management of Word4Word |
|
Income and expenses were increased by an average rate of 5% per annum (2013: 7%) |
|
Future cash flows were discounted at 18% (2013: 18%) which is a comparable rate for companies of this nature. |
The determination of the recoverable amount of goodwill was based on its value in use. Refer to note 5. |
|
NOTES TO THE FINANCIAL STATEMENTS l NOTE 9 |
|
|