NOTES
NOTE 1
| intangible assets | Carrying value 2016 |
Amortisation 2016 |
Amortisation 2015 |
|
| Goodwill – WAD Acquisition | 473 954 | – | – | |
| Goodwill – AfroCentric Health | 398 124 | – | – | |
| Customer relationships – WAD Acquisition | 81 282 | (8 203) | – | |
| AfroCentric Health intangible assets | 435 455 | (71 129) | (48 734) | |
| AfroCentric Health intangible PPA | 68 436 | (13 811) | (15 951) | |
| AfroCentric Health intangible Software | 278 399 | (39 062) | (28 589) | |
| Insurance Fraud Manager (Fraud Management Software) | 88 620 | (18 256) | (4 194) | |
| 1 388 815 | (79 332) | (48 734) |
The increase in intangible assets relates to the WAD Acquisition. Refer to supporting documentation on the AfroCentric website.
NOTE 2
The investment in Jasco Electronics Holdings Limited is no longer categorized as assets held for sale.
NOTE 3
The increase relates to the issue of 86.5 million shares amounting to R445 million for the acquisition of the WAD assets.
NOTE 4
The recognition of the conditional put option reserve (R703 million) plus interest, an IAS 32 accounting adjustment, is as a result of certain terms contained in the SANLAM agreement.
NOTE 5
26 192 902 shares to the value of R134.8 million will be issued to WAD vendors subject to certain profit thresholds being attained. These shares will be issued during 2017/2018 and the value thereof has already been anticipated by inclusion in Intangible Assets.
NOTE 6
SANLAM acquired an effective 28.7% interest in AHA for R703 million in December 2015. The acquisition agreement provides for a performance warranty in AHL any breach of which entitles SANLAM to claim a maximum additional 4.3% interest in the shares of AHA in satisfaction of such claim. In the event that the claim calculates at an amount in excess of 4.3% SANLAM has a right to require ACT to repurchase the shares owned by SANLAM at SANLAM’s initial cost plus interest at the 90 day deposit rate from the date of investment to the date of redemption. The Board do not expect such conditions to arise but International Accounting Standards (IAS 32) dictates the disclosure of such circumstances under Non-current liabilities rather than Capital and reserves.