RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 5. Intangible assets (Continued)

Figures in Rand thousand Rand Water

Group

Rand Water

2023

2022 Restated *

2021 Restated *

2023

2022 Restated *

2021 Restated *

Impairment and reversal of impairment

The carrying amounts of intangible assets within the scope of IAS 38 are reviewed annually and adjusted (if required) to determine whether there is any indication of impairment, with the exception of intangible assets with a finite useful life.

These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There was no indication of impairment on the intangible assets identified on the year under review.

A previously recognised impairment is reversed insofar as estimates change as a result of an event occurring after the impairment was recognised. An impairment is reversed only to the extent that the asset carrying amount does not exceed the carrying amount that would have been determined had no impairment been recognised. A reversal of an impairment is recognised in the Statement of Financial Performance.

Indefinite useful lives

Servitudes are rights granted to the Group for an indefinite period of time. These servitudes consist of land expropriated by Rand Water containing infrastructure owned by the Group and used in the production of revenue. Servitudes are not amortised but are assessed by means of an annual impairment test. The recoverable amount is determined through the results of the value in use and fair value less costs to sell impairment tests. The results of which have indicated that no impairment is required.

Computer Software

Rand Water assessed all its softwares and none were identified and classified as internally generated assets in terms of IAS 38.

During the current financial year the following assets have been identified as redundant assets and disclosed per asset class and category is listed per the table below.

Figures in Rand thousand Asset Class

Number of assets

Cost Accumulated Depreciation

Carrying value

Software

3

2 877

(2 877)

-

Assets pledged as security As at 30 June 2023 the Group had no intangible assets that were pledged as security.

Capital commitments

The Group is committed in respect of capital expenditure including expected contract price adjustments. This expenditure will be financed from internal resources and out of externally raised debt.

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