Page 133 - DUT Annual Report 2020

DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
3. INTANGIBLE ASSETS (continued) 2019
Cost
Accumulated Amortisation
Opening net carrying amount as at January 1, 2019
Additions Amortisation
Closing net carrying amount as at December 31, 2019
Made up as follows:
Cost
Accumulated amortisation
Net carrying amount
Right to internet usage* R’000
1 383 (1 239)
144
(7)
137
1 383 (1 246)
137
Computer Software R’000
13 303 (11 630)
1 673
6 753 (4 647)
3 779
20 056 (16 277)
3 779
Total R’000
14 686 (12 869)
1 817
6 753 (4 654)
3 916
21 439 (17 523)
3 916
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
*This intangible asset represents the right of use of internet bandwidth in terms of an agreement with the Tertiary Education and Research Network of South Africa (TENET) and was initially recognised at the present value of the future benefit to the University, discounted at 14.17% p.a. (2019: 14.17%) in terms of the agreement. It is amortised over a useful life of 20 years and the amortisation expense is included in ‘depreciation and amortisation’. The amortisation is also impacted by the reassessment of the expected internet usage.
4. INVESTMENTS
Fair value through other comprehensive income
2020 R’000
173 572 106 940 65 413
345 925
211 991 111 841 123 349
447 181
2019 R’000
218 666 87 931 57 974
364 571
240 641 90 375 108 409
439 425
4.1 At cost
4.2 At fair value
Listed shares at cost
Bonds, annuities and unit trusts Foreign investments
Market value of listed shares
Market value of bonds, annuities and unit trusts Market value of foreign investments
A register of the investments can be obtained from the Durban University of Technology's Treasury office. The fair value of the investments is based on the closing market values and other appropriate valuation methodologies as at December 31, 2020. The valuations are performed by independent fund managers who manage the University's investments under agreed mandates. The investments are managed on a portfolio basis during the year. Refer to note 22 for further details.
The maximum exposure to credit risk at the reporting date is the carrying value of the debt securities classified as fair value through other comprehensive income.
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