Notes to the consolidated financial statements | Note 18

        2016 
R'000 		         2015 
R'000 		  
18. Interest in associates                  
  Listed associates        3 628 411              4 205 685    
      Net asset value at acquisition        1 492 853              1 348 356    
      Inherent goodwill        4 318 229              4 279 236    
      Impairment allowances        (2 182 671)             (1 421 907)   
   Unlisted associates        119 077              142 486    
      Net asset value at acquisition        119 319              96 051    
      Inherent goodwill        (242)             46 435    
   Investments in associates at cost less impairments        3 747 488              4 348 171    
   Attributable share of post-acquisition reserves of associates        442 176              409 574    
      At beginning of year        409 573              300 881    
      Share of current year earnings net of dividend – continuing operations        11 294              117 069    
  
   – discontinued operations 
      (772)             15 634    
      Share of movement in other reserves – continuing operations        83 389              (6 893)   
  
   – discontinued operations 
      (311)             899    
      Reversal of prior year reserves on unbundling, disposal, and or change in shareholding        (60 997)             (18 016)   
   Advances to associates        832              58 667    
            4 190 496              4 816 412    
 

Unsecured advances to associates are interest free (2015: 0% and 11%) and have no fixed terms of repayment.

A list of the Group’s significant associates, their country of incorporation and principal place of business, the Group’s percentage shareholding and an indication of their nature of business is included on annexure A to these financial statements.

The Group’s most significant associate is Adcock Ingram Holdings Limited (Adcock). Adcock is a leading South African pharmaceutical manufacturer, listed on the Johannesburg Stock Exchange. The company manufactures, markets and distributes a wide range of healthcare products to both the private and public sectors of the market.

The Group holds 38,4% of the net ordinary shares in issue in Adcock, but equity accounts for 45,0% of its results as a consequence of treating the sale of 15% of its holding, in terms of the new Adcock BEE scheme to Ad-izinyosito, as a deferred sale.

Full details of Adcock’s results can be found at www.adcock.co.za.

      For the 
year ended 
June 30 
2016 
R’000 		     For the 
year ended 
June 30 
2015 
R’000 		  
  Summarised aggregated financial information of Adcock:            
  Revenue     5 559 896        5 558 926    
   Profit for the period     168 801        197 932    
   Other comprehensive income for the period     110 935        62 487    
   Total comprehensive income for the period     279 736        260 419    
   Dividends received from Adcock during the period     85 436        –    
   Current assets     3 460 786        2 841 636    
   Non-current assets     2 135 821        2 616 316    
   Current liabilities     (1 749 148)       (1 722 625)   
   Non-current liabilities     (592 862)       (618 403)   
   Non-controlling interests     (26 024)       (99 509)   
   Reconciliation of the above summarised financial information to the carrying amount of Adcock recognised in the consolidated financial statements:                   
   Net assets of Adcock     3 228 573        3 017 415    
   Proportion of Group’s interest in Adcock     1 454 321        1 312 615    
   Inherent goodwill     3 777 372        3 722 335    
   Provision for impairment of carrying value     (1 810 904)       (1 215 404)   
   Carrying value of Group’s interest in Adcock     3 420 789        3 819 546    
   Market value as at June 30     3 420 789        3 819 546    
   The investment in Adcock forms part of the Corporate and investments operating segment. The recoverable amount of the investment has been assessed with reference to the fair value determined based on the quoted market price at the year ended June 30 2016. This measurement is considered to be “level 1” in the fair value hierarchy. The Group assessed the carrying value of the investment for impairment and an impairment was recognised in the current year.                   
   The same impairment considerations have been applied to other listed investments in associates.                   
   Summarised aggregated financial information of associates that are not individually material:                   
   The Group’s share of profit                   
   – continuing operations     20 786        127 092    
   – discontinued operations     (772)       15 633    
   The Group’s share of other comprehensive income (loss)                  
   – continuing operations     23 835        (24 649)   
   – discontinued operations     (310)       900    
   The Group’s share of total comprehensive income                   
   – continuing operations     44 621        102 443    
   – discontinued operations     (1 082)       16 533    
   Aggregate carrying amount of the Group investment in these associates     769 707        996 866    

Notes to the consolidated financial statements | Note 18