4. NON-FINANCIAL INSTRUMENTS
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 asset's 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 profit and loss 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 assets' residual values and useful lives are reviewed, and adjusted if appropriate, at year-end. Where the asset's 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%
Media equipment 10% – 20%
Furniture, fittings and office equipment 16.67% – 25%
Motor vehicles 20% – 25%
Terminals and vending machines 16.67% – 33.3%
Buildings 8.33%

Major leasehold improvements are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

   Computer equipment
R'000 
Media 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 
Land and buildings
R'000 
Total
R'000
Year ended 31 May 2023                         
Opening carrying amount  34 640  7 931  11 024  27 887  8 033  101 699  4 099  195 313 
Additions  10 541  16 176  6 075  14 079  10 536  61 760    119 167 
Acquisition of subsidiary  404    14          418 
Disposals  (86)   (57) (2 214)   (2 594) (976) (5 927)
Depreciation charge  (18 268) (1 621) (4 631) (9 803) (5 188) (32 953)   (72 464)
Impairments***      (18)     (12 127)   (12 145)
Closing carrying amount  27 231  22 486  12 407  29 949  13 381  115 785  3 123  224 362 
At 31 May 2023                         
Cost  83 333  30 107  35 226  51 641  70 625  235 180  3 123  509 235 
Accumulated depreciation  (56 102) (7 621) (22 819) (21 692) (57 244) (110 077)   (275 555)
Accumulated impairments            (9 318)   (9 318)
Carrying amount  27 231  22 486  12 407  29 949  13 381  115 785  3 123  224 362 
Year ended 31 May 2022                         
Opening carrying amount  43 972  9 798  11 504  16 456  11 994  96 371  4 099  194 194 
Additions  10 550  —  3 746  20 163  1 108  42 246  —  77 813 
Disposals  (608) (473) (76) (2 290) (657) (4 307) —  (8 411)
Depreciation charge  (19 274) (1 394) (4 150) (6 442) (4 412) (29 031) —  (64 703)
Impairments***  —  —  —  —  —  (3 580) —  (3 580)
Closing carrying amount  34 640  7 931  11 024  27 887  8 033  101 699  4 099  195 313 
At 31 May 2022                         
Cost  88 588  13 930  21 899  43 643  52 700  206 702  4 099  431 561 
Accumulated depreciation  (53 948) (5 999) (10 875) (15 756) (44 667) (98 032) —  (229 277)
Accumulated impairments  —  —  —  —  —  (6 971) —  (6 971)
Carrying amount  34 640  7 931  11 024  27 887  8 033  101 699  4 099  195 313 
* In order to achieve enhanced disclosure, media equipment has been disaggregated from computer equipment. Comparative results have been updated accordingly.
** In order to achieve enhanced disclosure, equipment closer in nature to terminals and vending machines has been disaggregated from computer equipment. Comparative results have been updated accordingly.
*** Impairments of property, plant and equipment are included in depreciation and amortisation in profit or loss.

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.