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ANNUAL FINANCIAL STATEMENTS
Notes to the financial statements
continued
for the year ended 30 September 2014
176
Tiger Brands Limited Integrated Annual Report
2014
GROUP
(R’million)
Freehold
land and
buildings
Leasehold
land and
buildings
Plant,
vehicles
and
equipment
Capitalised
leased
assets
Total
11 Property, plant and equipment
continued
11.6 Movement of the group property,
plant and equipment
2014
Net balance at the beginning of the year
1 061,1
491,6 3 931,5
14,5 5 498,7
Additions
145,6
14,2
823,1
– 982,9
1 206,7
505,8 4 754,6
14,5 6 481,6
Disposals
–
–
(5,9)
– (5,9)
Depreciation
(43,8)
(14,3)
(617,5)
(3,5) (679,1)
Impairment
(3,8)
(12,1)
(129,4)
– (145,3)
Exchange rate translation difference
6,3
41,3
168,7
– 216,3
Net balance at the end of the year
1 165,4
520,7 4 170,5
11,0 5 867,6
2013 (restated)*
Net balance at the beginning of the year 1 046,5
101,9 2 201,9
8,9 3 359,2
Business combination
– 385,4 1 985,4
– 2 370,8
Additions
54,2
6,4
657,6
9,4 727,6
1 100,7
493,7 4 844,9
18,3 6 457,6
Disposals
(0,4)
–
(44,1)
– (44,5)
Transfer to assets held-for-sale
(6,4)
(61,9)
(499,3)
– (567,6)
Loss on remeasurement to fair value on
transfer of net assets to held-for-sale
–
–
(25,8)
– (25,8)
Depreciation
(39,2)
(14,8)
(649,0)
(3,8) (706,8)
Exchange rate translation difference
6,4
74,6
304,8
– 385,8
Net balance at the end of the year
1 061,1
491,6 3 931,5
14,5 5 498,7
*
The amounts have been restated due to the adoption of IAS 19R.
The impairment charge of R145,3 million mainly relates to the Nigeria segment. Impairment of property,
plant and equipment of R105,2 million was largely as a result of an assessment of available capacity
and the resultant mothballing of certain production lines in this segment. Refer to key valuation
assumptions detailed in note 13. The remaining impairment charge of R40,1 million is as a result of the
various efficiency improvement initiatives which were concluded in the current year, mainly within the
Consumer Brands segment. No borrowing costs (2013: R5,7 million) relating to plant were capitalised
during the year.