123 / 172
121
HSRC Annual Report 2016/17
Balance as at 31 March 2016
Reconciliation of carrying value
Total
R ‘000
Land and
buildings
R ‘000
Leasehold
improvements
R ‘000
Artwork
R ‘000
Motor
vehicles
R ‘000
Office
furniture
R ‘000
Equipment
R ‘000
Computer
equipment
R ‘000
Medical
equipment
R ‘000
Opening net carrying amount
207,702
179,942
278
1,676
5,659
8,452
4,288
7,297
110
Gross carrying amount
267,180
196,058
3,759
2,123
7,791
13,172
13,588
28,596
2,093
Accumulated depreciation
(59,478)
(16,116)
(3,481)
(447)
(2,132)
(4,720)
(9,300)
21,299)
(1,983)
Additions and revaluations
22,711
-
18
-
16,702
219
3,046
2,326
400
Revaluation adjustment
3,534
3,412
122
Additions
19,177
18
-
13,290
219
3,046
2,204
400
Assets reclassification
(3,534)
-
-
-
(3,412)
-
-
(122)
-
Cost
(3,534)
-
-
(3,412)
-
(122)
-
Accumulated depreciation
-
-
-
-
-
-
Disposals
(458)
-
-
-
(263)
(19)
(4)
(166)
(6)
Cost of disposal
(2,398)
-
(65)
(538)
(31)
(60)
(1,566)
(138)
Accumulated depreciation of disposal
1,940
-
65
275
12
56
1,400
132
Depreciation
(6,515)
(2,192)
(288)
(109)
(138)
(405)
(855)
(2,484)
(44)
Closing net carrying amount
219,906
177,750
8
1,567
18,548
8,247
6,475
6,851
460
Gross carrying amount
283,959
196,058
3,712
2,123
20,543
13,360
16,574
29,234
2,355
Accumulated depreciation
(64,053)
(18,308)
(3,704)
(556)
(1,995)
(5,113)
(10,099)
(22,383)
(1,895)
Historical cost would have been:
86,274
85,141
1,133
The land is registered as Stand 3242 Pretoria, measuring 7 655 m², Registration division JR, Transvaal and is situated at 134 Pretorius Street, Pretoria. The buildings classification combines land, lifts, telephone
systems, fixtures and buildings and comprises a reception area, offices, parking area, conference centre and a cafeteria. The valuation was conducted on 1 November 2014 by an independent valuer, Mr Mongodi
Pitso of Dijalo Valuation Services Management (Pty) Ltd, using the discounted cash flow (DCF) analysis method. In the DCF analysis the lease income is discounted for the total lease period at a discount rate
deemed appropriate. The total of the net cash flows equates to the net present value of the property. Market related capitalisation rates in the Pretoria CBD range between 9.90% for A-grade properties to 12.40%
for C-grade. A capitalisation rate of 11.50% was applied. Application of the R157 bond rate as per the date of valuation as well as the relevant sector and risk factors resulted in a total discount rate of 16.45%. The
building is not held as security for any obligations.
Artwork belonging to the HSRC was also revalued on 31 March 2015. The valuation was performed by Mr Gerrit Dyman of Absolut Art Gallery by observing similar artwork in the market and the prices such
artwork would cost on the valuation date.