9.  INVESTMENTS                
9.1  Interest in associates                
   Investments in unlisted associates at cost less impairments  97 362        81 702    
      Investment at beginning of year  81 702        85 521    
      Additions to unlisted associate investments  2 963        10 483    
      Impairment of associate  (267)       (6 308)   
      On acquisition of business  7 302        89    
      Exchange difference  5 662        (8 083)   
   Attributable share of post-acquisition losses of associates  16 925        (10 594)   
      At beginning of year  (10 594)       (4 509)   
      Share of current year earnings net of dividends  20 304        3 685    
      Share of movement in other reserves  386        221    
      Transfer out of post-acquisition reserves to cost  –        (9 991)   
      Movement in reserves on change in shareholding  6 829        –    
   Advances to associates  100 758        101 098    
      215 045        172 206    

An associate is a company over which the group has significant influence, but not control. Significant influence is the power to participate in the financial and operating policy decisions of a company but is not control over those policies.

The equity method of accounting for associates is adopted in the group financial statements. In applying the equity method, account is taken of the group’s share of accumulated retained earnings and movements in reserves from the effective dates on which the companies became associates and up to the effective dates of disposal. In the event of associates making losses, the group recognises the losses to the extent of the group’s exposure.

Intra-group balances and transactions and any unrealised income and expenses arising from intra-group transactions are eliminated. Unrealised gains arising from equity accounted investees are eliminated against the investment to the extent of the group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

Unsecured advances to associates bear interest at a rate of 1,7% to 5,0% (2017: 2,0% and 5,0%) and have no fixed terms of repayment.

A list of the group’s associates, their country of incorporation and principal place of business, the group’s percentage shareholding and an indication of their nature of business is included in note 12.3.

No individual associate is considered to be material, thus no summarised financial information is supplied in these financial statements.

9.2  Investments and loans                
   Unlisted investments held at fair value through other comprehensive income  49 568        47 962    
   Unlisted loans held at fair value through other comprehensive income  6 720        6 542    
   Unlisted investments held at amortised cost  27 626        20 996    
   Unlisted loans held at amortised cost  64 831        38 314    
      148 745        113 814    
   Fair value hierarchy of investments                
   Investments and loans held at cost or amortised cost  92 457        59 310    
   Investments held at fair value as determined on inputs based on:  56 288        54 504    
      Factors that are observable for the asset either as prices or derived from prices  –        1 848    
      Factors that are not based on observable market data  56 288        52 656    
      148 745        113 814    
   The group manages its credit risk for investments by investing in reputable instruments.                
   An impairment loss of R1,3 million was recognised on the RoundMenu Limited investment held by our Middle East operations (2017: R41,8 million was recognised on the Icelandic Water Holdings ehf investment).                
   A register of the investments is available for inspection by shareholders at the registered office of the company.                
9.3  Investment in jointly controlled entity                
   Balance at beginning of year  394 039        –    
   Recognition of CP jointly controlled entity at fair value  –        387 523    
   Share of net profit from jointly controlled entity  32 074        6 516    
   Dividends received from jointly controlled entity  (25 000)       –    
   Balance at end of year  401 113        394 039    

Effective April 1 2017, Bidcorp Food Africa Pty Limited, a subsidiary of Bid Corporation Limited, signed agreements with Puratos Group NV (Puratos) whereby Puratos became an equal shareholder in Bidcorp Bakery Solutions Division (BBS, subsequently renamed Chipkins Puratos CP). CP manufactures and supplies bakery ingredients to industrial bakers, the craft market and large retailers under the Chipkins and NCP brands in South Africa.

The interest in the joint venture is accounted for using the equity method of accounting. The joint venture was initially recorded at fair value and is increased or decreased by Bidcorp’s share of the profit or loss of CP after April 1 2017. Goodwill relating to the jointly controlled entity is included in the initial carrying amount of the investment. There were no impairments recognised for the investment in CP (2017: nil).

Upon loss of joint control over the investment in the jointly controlled entity, the group measures and recognises any remaining investment at its fair value. Any difference between the carrying amount of the investment in jointly controlled entity and the fair value of the remaining investment and any proceeds from disposal is recognised in the statement of consolidated profit or loss.

The CP jointly controlled entity net revenue represents 1,0% (2017: 0,9%), trading profit 1,4% (2017: 1,3%) and total assets 0,9% (2017: 0,5%) of the continuing operations for the Bidcorp Group. Thus, no summarised financial information has been supplied in these financial statements for CP.