Page 100 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2024
Notes to the Financial Statements (continued)
Figures in Rand
2024
2023
8. Intangible assets
Computer software, other
Cost / Valuation
1 630 954
2024
Accumulated amortisation and accumulated impairment
(1 598 919)
Carrying value
32 035
Cost / Valuation
1 630 954
2023
Accumulated amortisation and accumulated impairment
(1 595 430) Amortisation
Carrying value
35 524 Total
32 035
35 524
Reconciliation of intangible assets - 31 March 2024
Opening balance
Computer software, other 35 524
Change on estimates
30 000 Opening balance
Other changes, movements
Reconciliation of intangible assets - 31 March 2023
(30 000) Amortisation
(39 958)
(3 489)
Total
Computer software, other
9. Investments in associates
75 482
Carrying amount 2024
12 450 847 12 450 847
Name of entity Listed / Unlisted
KZN Studio (Pty) Ltd
% holding 2024
10.00 %
% holding 2023
10.00 %
Carrying amount 2023
13 220 460 13 220 460
Fair value 2024
12 450 847 12 450 847
Fair value 2023
13 220 460 13 220 460
The Investment in associate relates to the investment made by the KZNFilm in the establishment of KZN Film Studios. KZNFilm would have a 10% equity in the KZN Studios Company for a period of 3 years, and retain 10% of the seats on the board of KZN Studios until the company became sustainable.
In terms of (GRAP 36.06), an Associate is an entity, including an incorporated entity such as a partnership over which the investor has significant influence and that it is neither a controlled entity nor an interest in a joint venture.
Significant influence is the power to participate in the financial and operating policy decisions of an activity but is not control or joint control over policies.
(GRAP 36.08 & 09) states that if an investor holds directly or indirectly 20% or more of the voting power over the investee, it is presumed that the investor has significant influence unless it can be clearly demonstrated that this is not the case.
Conversely, if the investor holds directly or indirectly less than 20% if the voting power of the investee, it is presumed that the investor does not have significant influence unless such influence can be clearly demonstrated.
The existence of significant influence is usually evidenced by one or more of the following ways: (GRAP 36.10)
• Representation on the Board of Directors or equivalent governing body of the investee, the Board members’ representation by the KZNFilm was 1 member of the 3 members during the period and there were no meetings due to the project being on hold.
- Participation in policy making processes including participation in decisions about dividends and similar distributions, the KZNFilm has rights at a later stage to transfer the project to a deserving Broad-Based Black entity comprising of emerging
film makers.
- Material transactions between the investor and investee, as per the Framework the KZNFilm was committed to contribute
R15 million to cater for the first phase of the project. The first phase which includes initial setup, feasibly analysis and other project planning costs.
ANNUAL REPORT 2023/2024 98