Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 189

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 189
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 credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment. At every reporting date, historical default rates are updated and changes in the forward-looking estimates are analyzed.

The assessment of the correlation between
historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to
changes in circumstances and of forecast economic conditions. The Group’s historical credit loss experience and forecast of economic
conditions may also not be representative of customer’s actual default in the future. The information about the ECLs on the Group’s
trade receivables is disclosed in Note 29.2(a).

The carrying amounts of the Group’s trade receivables
at the end of the reporting period is disclosed in Note 11.

F-11

2.2
Accounting policies

The material accounting policies applied
in the preparation of these consolidated financial statements are set out below. The Group consistently applied the following accounting
policies to all periods presented in these consolidated financial statements, unless otherwise stated.

a)
Basis of consolidation

The consolidated financial statements
comprise the financial statements of the Company and its subsidiaries as at the end of the reporting period. The financial statements
of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company.
Consistent accounting policies are applied to like transactions and events in similar circumstances.

All intra-group balances, income and expenses and unrealized
gains and losses resulting from intra-group transactions and dividends are eliminated in full.

Subsidiaries are consolidated from
the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control
ceases.

Losses within a subsidiary are attributed to the non-controlling
interest even if that results in a deficit balance.

Business combinations and goodwill

Business combinations are accounted
for using the acquisition method. Identifiable assets acquired and liabilities assumed in business combination are measured initially
at their fair values at the acquisition date. Acquisition-related costs are recognized as expenses in the periods in which the costs are
incurred and the services are received.

Any contingent consideration to be
transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent
consideration which is an asset or liability are recognized in profit or loss.

Non-controlling interest in the acquiree,
that are present ownership interests and entitled their holders to