2019 Integrated Report

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2019 124 | PPS INTEGRATED REPORT 2019 Amounts recognised in the Statement of Profit or Loss and Other Comprehensive income The Statement of Profit and Loss and Other Comprehensive Income includes the following amounts related to leases: Group 2019 2018 R'000 R'000 Depreciation – Right-of-use assets: Buildings (included in expenses – Note 26) 21 747 – Interest expense (included in finance costs – Note 28) 6 887 – Expenses relating to short-term leases (included in expenses – Note 26) 6 413 34 896 The total cash outflow for leases in 2019 was R31.2 million. 3. INVESTMENT PROPERTY Group 2019 2018 R'000 R'000 Opening net book amount 408 540 381 869 Additions 72 013 43 441 Revaluation deficit (2 712) (16 770) Transfer from owner-occupied property 22 728 – Net carrying value at end of year 500 569 408 540 Investment properties were valued using the discounted cash flow of future income stream method. Investment property is carried at fair value and is classified as level 3 in terms of the IFRS 13 hierarchy. The transfer from owner-occupied property of R22.7 million is as a result of a subsidiary terminating its lease of a property owned by the Group. Investment property under construction is carried at cost. 4. INTANGIBLE ASSETS Computer Customer Software Relationships Total R'000 R'000 R'000 Year ended 31 December 2018 Opening net carrying value 89 941 – 89 941 Reclassification from Property and equipment (Note 2) 15 369 – 15 369 Additions 84 075 – 84 075 Amortisation (21 552) – (21 552) At 31 December 2018 167 833 – 167 833 Cost 232 582 – 232 582 Accumulated amortisation (64 749) – (64 749) Net carrying value at beginning of year 167 833 – 167 833 2. PROPERTY AND EQUIPMENT (continued)