1. RESULTS OF OPERATIONS
1.3 Operating profit
 
2020 
Rí000 
  Restated*
2019 
Rí000 
 
The following has been charged/(credited) in arriving at operating profit: 
Advertising and promotional expenses  20 341    19 607   
Audit fees – services as auditors relating to the year-end audit  30 290    24 656   
Audit fees – other  11 955    1 436   
Consulting fees  87 043    71 138   
Foreign exchange loss/(gain) 9 642    (2 827)  
Foreign exchange gain on 2DFine and OSI loans  (50 336)   (34 284)  
Impairment of inventory  5 167    5 024   
IT infrastructure costs and computer-related costs  47 884    33 614   
Legal fees  17 100    9 819   
Licence fees  23 758    14 592   
Motor vehicle expenses  14 240    15 089   
Operating lease rentals – premises1  5 799    37 980   
Profit on disposal of property, plant and equipment  (1 809)   (1 159)  
Travel – local and overseas  9 347    11 544   
* As a result of the discontinued operations, the Group has restated its comparative financial information. Refer to note 11 for details.
1 Operating lease rentals relate to short-term leases in terms of IFRS 16, which has been adopted in the current year. Refer to note 10.5. The comparative amount relates to all operating leases in terms of the previously applied IAS 17.

 

2020 
Rí000 
  Restated*
2019 
Rí000 
 
Impairments and fair value movements comprise the following: 
  Impairment of goodwill  213 583    50 398   
  Surety receivable recognised  (19 826)   (29 998)  
  Fair value losses on financial instruments  170 476    873 877   
364 233    894 277   
Bad debts and expected credit loss, arising from the application of IFRS 9, comprise the following: 
  Expected credit loss on loans  4 652    2 323   
  Expected credit loss on 2DFine and OSI loans  51 562    161 229   
  Financial guarantee contracts  (7 829)   58 832   
  Bad debts and expected credit losses on trade receivables, other receivables and advances to customers  67 947    13 169   
116 332    235 553   
Impairments on associates and joint venture comprise the following: 
  Impairment of investment in OSI  —    118 412    
  Impairment of investment in Cell C  —    2 521 152   
—    2 639 564   
Included in other expenses, impairments and fair value movements and impairments on associates and joint ventures above are the following: 
Impairments, fair value and foreign exchange movements relating to Oxigen 
  Expected credit loss on 2DFine loan  42 387    130 718   
  Expected credit loss on OSI loan  9 175    30 511   
  Foreign exchange gain on 2DFine loan   (41 162)   (28 552)  
  Foreign exchange gain on OSI loan   (9 175)   (5 732)  
  Surety receivable recognised  (19 826)   (29 998)  
  Foreign exchange losses and expected credit loss on financial guarantee contracts  10 166    62 132   
  Impairment of investment in OSI  —    118 412   
(8 435)   277 491   
Impairments and fair value losses relating to Cell C 
  Impairment of investment in Cell C  —    2 521 152   
  Fair value loss on SPV1 and SPV2  48 694    750 264   
48 694    3 271 416   
* As a result of the discontinued operations, the Group has restated its comparative financial information. Refer to note 11 for details.