Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 197

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 197
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ly attributable costs that are
capitalized as part of the intangible assets include software costs and the costs of personnel whose sole responsibility is their involvement
in the Group’s research and development function.

Other product development expenditures
that do not meet the recognition criteria are recognized as an expense as incurred. Product development costs previously recognized as
an expense are not recognized as an asset in a subsequent period if the criteria are subsequently met.

Costs incurred in enhancing current
telematics hardware (telematics devices) and software (SaaS platform) are expensed when incurred.

The capitalized product development
costs are amortized over their estimated useful life which is considered to be three years due to the life cycle of telematics hardware
and software applications.

ii.
Computer software

Computer software comprises self-developed
computer software acquired in a business combination and externally acquired computer software. Acquired computer software licenses are
capitalized on the basis of costs incurred to acquire and bring the software into use.

The acquired computer software is amortized
over the expected useful life which is generally three to five years. Self-developed computer software acquired in a business combination
are recognized at fair value at the acquisition date and subsequently carried at cost less accumulated amortization and accumulated impairment
losses, if any.

iii.
Trade name

Trade name acquired in a business combination
are recognized at fair value at the acquisition date and subsequently carried at cost less accumulated amortization and accumulated impairment
losses. Trade name is amortized on a straight-line basis over the expected useful life of five years.

iv.
Customer relationships

Customer relationships acquired in
a business combination are recognized at fair value at the acquisition date and subsequently carried at cost less accumulated amortization
and accumulated impairment losses. Customer relationships are amortized on a straight-line basis over the expected useful life of three
years.

i)
Impairment of non-financial assets

The Group assesses at each reporting
date whether there is an indication of impairment that an asset may be impaired or that a previously recognized impairment loss for an
asset other than goodwill may no longer exist or may have decreased. If any indication exists, or when an annual impairment testing for
an asset is required, the Group makes an estimate of the asset’s recoverable amount.

An asset’s recoverable amount
is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use and is determined
for an individual asset, unless the asset does not generate cash inflows that