RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2023

2022 Restated *

28. Depreciation

Depreciation recognised in other expenses

54 969

68 593

55 523

69 148

Depreciation recognised in cost of sales

545 670 406 401 545 670 406 401

Depreciation for the year excluding impairment

600 639 474 994 601 193 475 549

Impairment of assets

44 276 7 867 644 915 482 861 645 469 483 416 7 867 44 276

Depreciation recognised in cost of sales consists of the depreciation costs for property, plant and equipment that are utilised directly in the production of water which includes the abstraction, purification and distribution processes.

Depreciation recognised in other expenses consists of the depreciation costs for all other property, plant and equipment utilised in support and administration processes (see note 4 and note 24 respectively).

The residual values of the motor vehicles were reassessed and prospectively adjusted with the estimated value that the Group would expect to receive upon disposal of the assets at the end of its useful lives. This resulted in an impact to the depreciation charge to the value of R8.1 million in the 2018 financial year. 29. Amortisation

Amortisation recognised in cost of sales Amortisation recognised in other expenses

4 420

3 813

4 420

3 813

11 628 16 048

10 743 14 556

11 628 16 048

10 743 14 556

Amortisation recognised in cost of sales consists of the amortisation charge for intangible assets that are utilised directly in the production of water which includes the abstraction, purification and distribution processes.

Amortisation recognised in other expenses consists of the amortisation charge for all other intangible assets utilised in support and administration processes (see note 5 and note 24 respectively).

285