Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 196

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 196
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            5 years              
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  h) Intangible assets  
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Intangible assets acquired separately
are measured initially at cost. Following initial acquisition, intangible assets are carried at cost less any accumulated amortization
and any accumulated impairment losses.

The useful lives of intangible assets
are assessed as either finite or indefinite.

Intangible assets with finite useful
lives are amortized over the estimated useful life and assessed for impairment annually whenever there is an indication that the intangible
asset may be impaired. The amortization period and the amortization method are reviewed at least at each financial year end. Changes in
the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful
lives or not yet available for use are tested for impairment annually, or more frequently if the events and circumstances indicate that
the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortized.
The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment
continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from de-recognition
of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized
in the profit or loss when the asset is derecognized.

i.
Product development costs

Product development costs that are
directly attributable to the design, testing and development of identifiable hardware and software, controlled by the Group, are recognized
as intangible assets when the following criteria are met:

  It is technically feasible to complete the software or product so that it will be available for use or sale;  

  Management intends to complete the software or product and use or sell it;  

  There is an ability to use or sell the software or product;  

  It can be demonstrated how the software or product will generate probable future economic benefits;  

  Adequate technical, financial and other resources to complete the development and use or sell the software or product are available;  

  The expenditure attributable to the software or product during its development can be reliably measured.  

F-17

Direct