The classification of financial assets and liabilities is included below:
| |
|
IFRS 9 |
|
| |
|
Financial
assets
measured
at
fair value
through
other
comprehensive
income
R’000 |
Financial
assets
measured at
fair value
through
profit or loss
R’000 |
Financial
assets at
amortised
cost
R’000 |
Financial
liabilities at
amortised
cost
R’000 |
|
Total
carrying
value
R’000 |
|
| 2019 |
|
|
|
|
|
|
|
|
| Financial assets |
|
|
|
|
|
|
|
|
| Investment in group companies |
|
— |
— |
2 029 910 |
|
|
2 029 910 |
|
| Financial assets measured at fair value through other comprehensive income (2018: Available-for-sale investments) |
|
317 795 |
— |
— |
|
|
317 795 |
|
| Financial assets measured at fair value through profit and loss |
|
— |
122 |
— |
|
|
122 |
|
| Loans to group companies |
|
— |
3 053 304 |
— |
|
|
3 053 304 |
|
| Other receivables |
|
— |
— |
655 487 |
|
|
655 487 |
|
| Taxation |
|
— |
— |
1 256 |
|
|
1 256 |
|
| Cash resources |
|
— |
— |
3 781 970 |
|
|
3 781 970 |
|
| |
|
317 795 |
3 053 426 |
6 468 623 |
|
|
9 839 844 |
|
| Financial liabilities |
|
|
|
|
|
|
|
|
| Amounts due from group companies |
|
|
|
|
31 251 |
|
31 251 |
|
| Other payables |
|
|
|
|
5 068 |
|
5 068 |
|
| |
|
|
|
|
36 319 |
|
36 319 |
|
| |
|
|
|
|
|
|
|
|
| |
|
IAS 39 |
|
| |
|
Available-
for-sale
investments
R‘000 |
|
Loans and
receivables
R‘000 |
Financial
liabilities at
amortised
cost
R‘000 |
Other assets
and liabilities
R‘000 |
Total
carrying
value
R‘00 |
|
| 2018 |
|
|
|
|
|
|
|
|
| Financial assets |
|
|
|
|
|
|
|
|
| Investment in group companies |
|
— |
|
— |
|
1 505 303 |
1 505 303 |
|
| Available-for-sale investments |
|
262 125 |
|
— |
|
— |
262 125 |
|
| Loans to group companies |
|
— |
|
4 140 886 |
|
— |
4 140 886 |
|
| Other receivables |
|
— |
|
662 516 |
|
— |
662 516 |
|
| Cash resources |
|
— |
|
1 986 119 |
|
— |
1 986 119 |
|
| |
|
262 125 |
|
6 789 521 |
|
1 505 303 |
8 556 949 |
|
| Financial liabilities |
|
|
|
|
|
|
|
|
| Loans from group companies |
|
|
|
|
3 062 |
— |
3 062 |
|
| Taxation |
|
|
|
|
2 144 |
— |
2 144 |
|
| Other payables |
|
|
|
|
14 425 |
— |
14 425 |
|
| |
|
|
|
|
19 631 |
— |
19 631 |
|
Determination of fair values
Listed investments disclosed as financial assets measured at fair value through other comprehensive income (2018: Available-forsale
listed investments) are valued using quoted market prices. The values of other investments and forward exchange contracts
are determined using directly observable inputs. The carrying amounts of all other financial assets and financial liabilities
approximate fair values.
Fair value hierarchy
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted prices in an active market that are unadjusted for identical assets or liabilities;
Level 2: valuation techniques using inputs, which are directly or indirectly observable; and
Level 3: valuations based on data that is not observable.
The values of all other instruments recognised, but not subsequently measured at fair value, approximate fair value.
The following assets and liabilities were measured as follows:
| |
|
2019
R’000 |
|
|
|
2018
R’000 |
|
| Assets measured at fair value, measured at level 1 |
|
|
|
|
|
|
|
| Financial assets measured at fair value through other comprehensive income |
|
|
|
|
|
|
|
| (2018: Available-for-sale investments) |
|
317 795 |
|
|
|
262 125 |
|
| Assets and liabilities measured at fair value, measured at level 2 |
|
|
|
|
|
|
|
| Fair value of loans due to group companies (net amount) |
|
— |
|
|
|
4 161 965* |
|
| Financial assets measured at fair value through profit and loss |
|
122 |
|
|
|
— |
|
| Assets and liabilities measured at fair value, measured at level 3 |
|
|
|
|
|
|
|
| Fair value of loans to structured entities |
|
3 684 462 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
The fair values of the loans to structured entities were determined by way of discounted cash flow valuation, which will be utilised
to settle interest accruing on these loans at a percentage of the prime rate communicated by SBSA, and a published risk-free rate
being applied to discount the net anticipated cash flow in respect of these loans.
The significant unobservable input used in the fair value measurements categorised within level 3 of the fair value hierarchy, and a
quantitative sensitivity analysis as at 30 June 2019 are shown below:
| Significant unobservable input |
|
Range (weighted average) |
|
Sensitivity of the input to fair value |
| Discount rate |
|
7,50% to 7,69% |
|
1% increase/(decrease) in the discount rate would result in
an increase/(decrease) in fair value of R214 341 000/
(R180 296 000) |
| * This balance has been restated in terms of IFRS 9, which the company adopted on 1 July 2018. |
|
|
|