4.3 Property, plant and equipment
 

Property, plant and equipment is initially recorded at historical cost, being the purchase cost plus any cost to prepare the assets for their intended use. Historical cost includes expenditure that is directly attributable to the acquisition of the item. Subsequent costs are included in the assetís carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the income statement during the financial year in which they are incurred.

Property, plant and equipment is subsequently carried at historical cost less accumulated depreciation and any accumulated impairment losses.

The assetsí residual values and useful lives are reviewed, and adjusted if appropriate, at year-end. Where the assetís residual value is higher than the carrying value, no depreciation is provided.

Gains and losses on disposal of property, plant and equipment are determined as the difference between the carrying amount and the fair value of the sale proceeds, and are included in operating profit.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

Depreciation is calculated on the straight-line basis to write off the cost of the assets to their residual values over their estimated useful lives as follows:

Computer equipment 25% – 33.3%
Furniture, fittings and office equipment 16.67% – 25%
Motor vehicles 20% – 25%
Terminals and vending machines 16.67%
Buildings 8.33%

Major leasehold improvements are depreciated over the shorter of their respective lease periods and estimated useful lives.

Computer 
equipment 
R'000 
Furniture, 
fittings 
and office 
equipment 
R'000 
Motor 
vehicles 
R'000 
Leasehold 
improve- 
ments 
R'000 
Terminals 
and 
vending 
machines 
R'000 
Buildings 
R'000 
Total 
R'000 
  
Year ended 31 May 2020                 
Opening carrying amount  58 329  28 405  22 608  32 854  91 362  4 099  237 657    
Additions  64 964  10 506  6 968  37 196  18 988  —  138 622    
Acquisition of subsidiaries  35  —  —  —  —  —  35    
Disposals  (3 650) (563) (3 050) (687) (4 474) —  (12 424)   
Depreciation charge – continuing operations  (21 315) (3 527) (6 324) (2 950) (22 197) —  (56 313)   
Depreciation charge – discontinued operations  (4 600) (10 126) (419) (7 466) —  —  (22 611)   
Impairments – continuing operations*  —  —  —  —  (7 303) —  (7 303)   
Impairments - discontinued operations**  (8 565) (12 005) —  (37 828) —  —  (58 398)   
Disposal of subsidiaries  (7 264) (2 706) (2 250) (8 531) —  —  (20 751)   
Translation difference  134  (21) (28) 89  —  —  174    
Closing carrying amount  78 068  9 963  17 505  12 677  76 376  4 099  198 688    
At 31 May 2020 
Cost  167 186  51 809  30 317  103 390  195 475  4 099  552 276    
Accumulated depreciation  (80 553) (29 841) (12 812) (52 885) (110 502) —  (286 593)   
Accumulated impairments  (8 565) (12 005) —  (37 828) (8 597) —  (66 995)   
Carrying amount  78 068  9 963  17 505  12 677  76 376  4 099  198 688    
Year ended 31 May 2019 
Opening carrying amount  40 286  10 908  21 599  5 200  55 028  4 099  137 120    
Additions  32 449  10 099  10 063  17 841  63 576  —  134 028    
Acquisition of subsidiaries  7 443  18 433  455  14 164  4 488  —  44 983    
Disposals  (547) (7) (2 842) (199) (874) —  (4 469)   
Depreciation charge – continuing operations  (16 290) (3 180) (6 237) (1 808) (28 804) —  (56 319)   
Depreciation charge – discontinued operations  (5 012) (7 863) (517) (3 203) (50) —  (16 645)   
Impairments – continuing operations*  —  —  —  —  (2 002) —  (2 002)   
Translation difference  —  15  87  859  —  —  961    
Closing carrying amount  58 329  28 405  22 608  32 854  91 362  4 099  237 657    
At 31 May 2019                         
Cost  140 964  50 113  33 740  84 994  206 517  4 099  520 427    
Accumulated depreciation  (82 465) (20 584) (11 132) (51 702) (111 897) —  (277 780)   
Accumulated impairments  (170) (1 124) —  (438) (3 258) —  (4 990)   
Carrying amount  58 329  28 405  22 608  32 854  91 362  4 099  237 657    
* Included in depreciation and amortisation on the Group income statement.
** These impairments arose as a consequence of the closure of WiConnect which has been accounted for as a discontinued operation. Refer to note 11.

There are no property, plant and equipment assets that are encumbered.

The residual values of buildings are estimated to be higher than the carrying value and therefore there is no depreciation charge.