Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 192

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 192
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income and accumulated under foreign currency translation reserve in equity. The exchange differences that arise after that date are recognized
in profit or loss. When these monetary items are settled, the exchange differences accumulated under foreign currency translation reserve
in equity are reclassified from equity to profit or loss.

c)
Financial instruments

i.
Financial assets

Initial recognition and measurement

Financial assets are recognized when, and only when, the
Group becomes a party to the contractual provisions of the financial instruments.

At initial recognition, the Group measures
a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.

Trade receivables are measured at the
amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial
recognition.

Subsequent measurement

Subsequent measurement of debt instruments
depends on the Group’s business model for managing the asset and the contractual cash flow characteristics of the asset. The measurement
categories for classification of debt instruments are:

Amortized cost

Financial assets that are held for
the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized
cost. Financial assets are measured at amortized cost using the effective interest method, less impairment. Gains and losses are recognized
in profit or loss when the assets are derecognized or impaired, and through amortization process.

F-14

Fair value through other comprehensive income (“ FVOCI”)

Financial assets that are held for
collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments
of principal and interest, are measured at FVOCI. Financial assets measured at FVOCI are subsequently measured at fair value. Any gains
or losses from changes in fair value of the financial assets are recognized in other comprehensive income, except for impairment losses,
foreign exchange gains and losses and interest calculated using the effective interest method are recognized in profit or loss. The cumulative
gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment
when the financial asset is derecognized.

Fair value through profit or loss (“