Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 190

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 190
---
 a proportionate share of net assets of the acquiree are recognized
on the acquisition date at either fair value, or the non-controlling interest’s proportionate share of the acquiree’s identifiable
net assets.

Any excess of the sum of the fair value
of the consideration transferred in the business combination, the amount of non-controlling interest in the acquiree (if any), and the
fair value of the Group’s previously held equity interest in the acquiree (if any), over the net fair value of the acquiree’s
identifiable assets and liabilities is recorded as goodwill. In instances where the latter amount exceeds the former, the excess is recognized
as gain on bargain purchase in profit or loss on the acquisition date.

Goodwill is initially measured at cost. Following initial
recognition, goodwill is measured at cost less any accumulated impairment losses.

For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition date, allocated to the Group’s cash-generating units that are
expected to benefit from the synergies of the combination.

The cash-generating units to which
goodwill have been allocated is tested for impairment annually and whenever there is an indication that the cash-generating unit may be
impaired. Impairment is determined for goodwill by assessing the recoverable amount of each cash-generating unit (or group of cash-generating
units) to which the goodwill relates.

F-12

Subsidiaries

Subsidiaries are entities controlled
by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. The financial results of subsidiaries are consolidated
into the Group’s results from acquisition date until loss of control.

When the Group loses control over a
subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting
gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is
lost.

Non-controlling interest

Non-controlling interest (“ NCI”)
represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company. Changes in the Company’s
ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances,
the carrying amounts of the controlling and non- controlling interests