Page 87 - KZN Film A Report

Notes to the Financial Statements (continued)
KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2021
Figures in Rand
2021
2020
8. Intangible assets
Computer software, other
2021
2020
Accumulated Carrying
Cost/ Valuation
Accumulated Carrying Cost/ amortisation Value Valuation
2,005,955
(1,784,521) 221,434 2,302,577
Reconciliation of intangible assets - 31 March 2021
Opening balance
Computer software, other
Reconciliation of intangible assets - 31 March 2020
Disposals
Additions
Carrying amount 31 March 2021
15,000,000 15,000,000
Change in estimate
Prior year correction of error
Carrying amount 2020
15,000,000 15,000,000
amortisation
(1,888,165)
Amortisation
Amortisation
(436,737)
Fair value 2021
15,000,000 15,000,000
value
414,412
Total
221,434
Total
414,412
Fair value 2020
15,000,000 15,000,000
414,412
(10,132) 79,923 (262,769)
Computer software, other
9. Investments in associates
Name of entity Listed/ Unlisted
KZN Studios Unlisted
% holding 2021
10.00 %
Opening balance
% holding 2020
10.00 %
793,353 50,000 7,796
The Investment in associate relates to the development costs in the establishment of the KZN Studios. The entity will acquire 10% in the KZN Studio pending the finalisation of Funding Structure.
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 KZNFC was 2 members of the 4 members which give a balance in voting rights of 2:4 (50%).
- Participation in policy making processes including participation in decisions about dividends and similar distributions, the KZNFC 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 KZNFC 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.
KZN FILM COMMISSION ANNUAL REPORT 2020/2021
85