Notes to the consolidated financial statements | Note 18

      2017 
R’000 		       2016 
R’000 		   
18.  Interest in associates                
   Listed associates  4 661 516        3 628 411    
      Net asset value at acquisition  1 425 513        1 492 853    
      Inherent goodwill  4 073 768        4 318 229    
      Remeasurement allowances  (837 765)       (2 182 671)   
   Unlisted associates  104 182        119 077    
      Net asset value at acquisition  205 876        119 319    
      Inherent goodwill  6 732        (242)   
      Remeasurement allowances  (108 426)       –    
   Investments in associates at cost less impairments  4 765 698        3 747 488    
   Attributable share of post-acquisition reserves of associates  608 790        442 176    
      At beginning of year  442 176        409 573    
      Share of current year earnings net of dividend – continuing operations  264 737        11 294    
  
   – discontinued operations 
–        (772)   
   Share of movement in other reserves – continuing operations  (69 191)       83 389    
  
   – discontinued operations 
–        (311)   
      Reversal of prior year reserves on unbundling, disposal, and or change in shareholding  (28 932)       (60 997)   
   Advances to associates  840        832    
      5 375 328        4 190 496    
 

Unsecured advances to associates are interest free 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 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 
30 June 
2017 
R’000 		       For the 
year ended 
30 June 
2016 
R’000 		   
   Summarised aggregated financial information of Adcock:                
   Revenue  5 957 700        5 559 896    
   Profit for the period  553 534        168 801    
   Other comprehensive income for the period  (147 966)       110 935    
   Total comprehensive income for the period  405 568        279 736    
   Dividends received from Adcock during the period  77 024        85 436    
   Current assets  3 326 463        3 460 786    
   Non-current assets  2 236 510        2 135 821    
   Current liabilities  (1 726 546)       (1 749 148)   
   Non-current liabilities  (341 423)       (592 862)   
   Non-controlling interests  (7 522)       (26 024)   
   Reconciliation of the above summarised financial information to the carrying amount of Adcock recognised in the consolidated financial statements:                
   Net assets of Adcock  3 487 482        3 228 573    
   Proportion of Group’s interest in Adcock  1 570 947        1 454 321    
   Inherent goodwill  3 767 061        3 777 372    
   Provision for remeasurement of carrying value  (773 352)       (1 810 904)   
   Carrying value of Group’s interest in Adcock  4 564 656        3 420 789    
   Market value as at 30 June  4 564 656        3 420 789    
   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 30 June 2017. This measurement is considered to be “level 1” in the fair value hierarchy. The Group assessed the carrying value and remeasured the investment to recoverable fair value.                
   The same remeasurement 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  129 728        20 786    
  
   – discontinued operations 
–        (772)   
   The Group’s share of other comprehensive income (loss)               
  
   – continuing operations 
(637)       23 835    
  
   – discontinued operations 
–        (310)   
   The Group’s share of total comprehensive income                
  
   – continuing operations 
129 091        44 621    
  
   – discontinued operations 
–        (1 082)   
   Aggregate carrying amount of the Group investment in these associates  810 672        769 707    

Notes to the consolidated financial statements | Note 18