Notes to the annual financial statements

FOR THE YEAR ENDED 31 MARCH 2010

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5.	Intangible assets
		Cost or  valuation  R million	2010  Accumulated  impairment/  amortisation  R million	Net  value  R million	Cost or  valuation  R million	2009  Accumulated  impairment/  amortisation  R million	Net  value  R million
	Goodwill	350	(12)	338	347	–	347
	Trade marks and other	100	(77)	23	144	(97)	47
		450	(89)	361	491	(97)	394
						2010	2009
	Amortisation rates are as follows:					%	%
	Trade marks and other					5 – 100	5 – 100
	Reconciliation of carrying value at the beginning and end of the year	Goodwill  R million	Trade marks  and other  R million	2010  R million	Goodwill  R million	Trade marks  and other  R million	2010  R million
	Balances at 1 April	347	47	394	345	63	408
	Additions	–	2	2	–	–	–
	Amortisation	–	(10)	(10)	–	(11)	(11)
	Impairment	(12)	(14)	(26)	–	–	–
	Businesses acquired	5	2	7	4	–	4
	Other	(2)	(4)	(6)	(2)	(5)	(7)
	Balances at 31 March	338	23	361	347	47	394

Goodwill is tested annually for any possible impairment and for this reason allocated to the respective cash-generating units as indicated below. During the year under review goodwill amounting to R12 million was impaired.

		Rainbow  Chicken  Limited  and its  subsidiaries	Tsb Sugar  Holdings  (Pty) Limited  and its  subsidiaries	Wispeco  Holdings  Limited  and its  subsidiaries	2010  Total
	Goodwill allocated (R million)	292	32	14	338
	Basis of valuation of cash-generating units	Value in use	Value in use	Value in use

R287 million of the goodwill relating to Rainbow Chicken and its subsidiaries relates to the acquisition of Vector Logistics (Pty) Limited in 2005. In determining the value in use of the cash-generating unit to which this goodwill was allocated, the following assumptions were used:

	Discount rate		16.8%
	Growth rate		5.0%
	Period		5 years
	Sensitivity analysis of assumptions used in the goodwill impairment test:
	Assumption	Movement	Impairment
	Discount rate	+5%	Nil
	Growth rate	–5%	Nil