119 / 198
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
117
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
3.
Financial instruments and financial risks
continued
3.1 Financial assets continued
3.1.2 Trade and other receivables continued
Contingent consideration receivable
Changes in level 3 instruments are as follows:
2016
R’000
2015
R’000
Opening balance
17 757
—
Disposal of Ukash
—
17 497
Receipts
(5 813)
—
Gains or losses recognised in profit or loss
3 916
260
Closing balance
15 860
17 757
Total gains or losses for the period included in profit or loss for receivables held at
the end of the reporting period, under:
Other income
3 650
217
Interest received
266
43
Change in unrealised gains or losses for the period included in profit or loss for
receivables held at the end of the reporting period
3 919
216
The potential undiscounted amount of all future receipts that the Group could receive is between Rnil and
R15.9 million (£nil and £0.7 million).
The fair value of the contingent consideration arrangement of R15.9 million was estimated by applying the income
approach. The fair value estimates are based on a discount rate of 1.5% based on the United Kingdom prime lending
rate. For all remaining warranties management has assumed a probability of 98% based on the historical knowledge
of the business and the warranties appearing achievable.
The Group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in this note and
note 3.
Performance of trade debtors and receivables from related parties is assessed to be as follows:
Gross
R’000
Impairment
R’000
Net
R’000
31 May 2016
Fully performing
2 313 935
— 2 313 935
Past due by one to 30 days
100 853
342
100 511
Past due by 31 to 60 days
32 298
118
32 180
Past due by 61 to 90 days
16 346
150
16 196
Past due by more than 90 days
46 476
11 660
34 816
2 509 908
12 270
2 497 638
Portfolio impairment
1 580
(1 580)
2 509 908
13 850
2 496 058
31 May 2015
Fully performing
2 515 633
— 2 515 633
Past due by one to 30 days
50 545
111
50 434
Past due by 31 to 60 days
28 742
98
28 644
Past due by 61 to 90 days
26 154
310
25 844
Past due by more than 90 days
38 390
9 408
28 982
2 659 464
9 927 2 649 537
Portfolio impairment
1 000
(1 000)
2 659 464
10 927 2 648 537
Receivables in respect of starter pack debtors are included in fully performing debtors above.