Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 187

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 187
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 the Company
and its subsidiaries (collectively the “ Group” and individually “group companies”).

Statement of compliance

The consolidated financial statements
of the Group have been prepared in accordance with the IFRS as issued by the International Accounting Standards Board (IASB).

The policies applied in these annual financial statements
are based on IFRS effective for annual period beginning on March 1, 2024. The Group has prepared the financial statements on the basis
that it will continue to operate as a going concern.

The financial statements were approved
for issue by the Directors on June 9, 2025.

Basis of measurement

The consolidated financial statements have been prepared
on the historical cost basis with the exception of certain financial instruments that have been measured at fair value.

Functional and presentation currency

The consolidated financial statements
are presented in South African Rand (ZAR), which is the Group’s presentation currency and all values are rounded to the nearest
thousand (ZAR’000), except when otherwise indicated. The Company’s functional currency is in United States Dollars (USD).

F-10

2.
MATERIAL ACCOUNTING POLICY INFORMATION

2.1
Significant accounting judgments, estimates and assumptions

The preparation of the Group’s
consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of
revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. Uncertainty
about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset
or liability affected in the future periods.

Judgments

Management is of the opinion that there
is no significant judgment made in applying accounting policies that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial period.

Estimates and assumptions

The key assumptions concerning the
future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions
and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group.
Such changes are reflected in the assumptions when they occur.

i.
Useful life estimates of capitalized telematics devices and capitalized commission assets

The Group completes a detailed assessment