2019 
R’000 		     2018 
R’000 		  
9. INVESTMENTS          
9.1 Interest in associates          
   Investments in unlisted associates at cost less impairments 87 154      97 362   
     Balance at beginning of year 97 362      81 702   
     Increase in unlisted associate investment 5      2 963   
     Change in shareholding in associate (14 469)     –   
     On acquisition of business 4 244      7 302   
     Exchange difference 12      5 662   
     Impairment of associate –      (267)  
  Attributable share of post-acquisition losses of associates 58 940      16 925   
     At beginning of year 16 925      (10 594)  
     Share of current year earnings net of dividends 28 929      20 304   
     Share of movement in other reserves (1 383)     386   
     Movement in reserves on change in shareholding 14 469      6 829   
  Advances to associates held at amortised cost 31 884      100 758   
    177 978      215 045   
 

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 groups 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 3,0% (2018: 1,7% 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.
     2019
R’000		   2018
R’000		  
9.2 Investments and loans        
   Unlisted investments held at fair value through other comprehensive income 48 908   49 568  
  Unlisted investments held at amortised cost 15 405   18 798  
  Unlisted loans held at fair value through other comprehensive income 6 207   6 720  
  Unlisted loans held at amortised cost 121 726   73 659  
    192 246   148 745  
 

The group manages its credit risk for investments by investing in reputable instruments.

Unlisted investments held at fair value through other comprehensive income, is an unlisted investment in Icelandic Water Holdings ehf which is a spring water producer from Ölfus, Iceland. The group holds an equity investment of 14,59% and the fair value of the investment at June 30 is R48,9 million (R49,6 million). No dividends were received in 2019 (2018: nil).

During the year, no investment and loan impairments were identified (2018: R1,4 million was recognised on the RoundMenu Limited investment held by the Middle East operations).

A register of the investments is available for inspection by shareholders at the registered office of the company.

The group adopted IFRS 9 Financial Instruments, on July 1 2018 and in accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. The classification categories previously defined under IAS 39 were replaced in IFRS 9 with the categories “amortised cost”, “fair value through profit or loss” and “fair value through other comprehensive income”.

  IAS 39 IFRS 9   Difference  
Categories of financial assets          
Unlisted investments held at fair value through other comprehensive income 49 568 49 568   –  
Unlisted investments held at amortised cost 18 798 18 798   –  
Unlisted loans held at fair value through other comprehensive income 6 720 6 720   –  
Unlisted loans held at amortised cost 73 659 73 659   –  
  148 745 148 745   –  
     2019 
R’000 		   2018 
R’000 		  
9.3 Investments in jointly-controlled entities        
   Balance at beginning of year 401 113    394 039   
  Additions to jointly-controlled entities 51 017    –   
  Share of profit from jointly-controlled entities 30 219    32 074   
  Exchange difference (374)   –   
  Dividends received from jointly-controlled entity –    (25 000)  
  Balance at end of year 481 975    401 113   
 

Effective April 1 2017, Bidcorp Food Africa Proprietary Limited, a subsidiary of Bid Corporation Limited, signed agreements with Puratos Group NV (Puratos) whereby Puratos became an equal shareholder in Bidcorp Food’s 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.

Effective April 1 2019, Bidcorp acquired 38% of the Blancaluna Grupo, a broadline foodservice wholesaler based in Argentina. As all strategic decisions require joint approval by a Bidcorp appointed director and a Blancaluna representative, Blancaluna has been classified in terms of IFRS 11 as a joint venture.

Interests in the joint ventures are accounted for using the equity method of accounting. Joint ventures are initially recorded at fair value and thereafter are increased or decreased by Bidcorp’s share of the profit or loss. Goodwill relating to joint-controlled entities are included in the initial carrying amount of the investment. There were no impairments recognised for any investments in jointly-controlled entities (2018: nil).

Upon loss of joint control over an investment in a 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.

Jointly-controlled entities’ net revenue represent 1,0% (2018: 1,0%), trading profit 0,9% (2018: 1,4%) and total assets 0,5% (2018: 0,5%) of the continuing operations for the Bidcorp Group.

Thus, no summarised financial information has been supplied in these financial statements.