Impairment of investments arises when the recoverable amount of the Investment is less than the carrying value. The recoverable amount is determined as the greater of the fair value less costs to sell or the value in use. For the purposes of assessing the above Investments for impairment, the recoverable amount was based on the fair value less costs to sell method.

With the outbreak of the COVID-19 global pandemic, the resulting global economic downturn and the credit rating downgrade of South Africa to sub-investment grade all investments in associates and joint ventures were assessed for impairment at 30 September 2020 which resulted in the below mentioned impairments.

Reasons for impairment are as follows:

BHBW South Africa (Pty) Ltd
Projections indicate the Company will continue to make losses through 2020 and 2021 impacted by the COVID-19 crisis and the related economic downturn. The impairment recognised is a reflection of projected cash flows in the current market environment. The discount rate increased in the period under review, further impacting on the valuation.

The sensitivity of management's assumptions as applied in the valuation is demonstrated below. Specifically, the sensitivity analysis indicates the point at which the headroom over the carrying value is reduced to zero (break even). Each sensitivity has been performed independently and not cumulatively across all assumptions.

As at 30 September 2020, management have performed sufficient sensitivity analysis to conclude that a reasonably possible change in key assumptions would not cause the carrying amount of the Group's individual CGUs to exceed their recoverable amount (fair value less costs to sell) (other than for those investments that were impaired in the year).

DETAILS OF MATERIAL JOINT VENTURES

The joint venture operates in Mauritius and the DRC.

Summarised financial information in respect of the Group's material joint venture is set out below, the summarised financial information
represents amounts shown in the joint venture's financial statements prepared in accordance with IFRS.

Summarised financial information in respect of the group's material associates is set out below, the summarised financial information represents amounts shown in the associate's financial statements prepared in accordance with IFRS.

The group accounts for NMI Durban South Motors (Pty Ltd using the equity accounting method as Barloworld has the power to participants in the financial and operating policy decision of the investee but in control or joint control of these policies.

Although Barloworld has 50% interest, joint control does not exist because the remaining 50% investment in NMI Durban South Motors (Pty) Ltd is held by two parties.

There are no restrictions on the ability of the group's joint ventures and associates to transfer funds to the Group in the form of cash dividends or to repay loans or advances owing to the Group.

The Group has no commitments arising from its involvement with joint ventures and associates.

Financial liabilities arising from the issuance of guarantees over obligations of the joint ventures and associates are disclosed in credit risk note 34.2.d. The Group considers the probability of loss arising from these guarantees as remote as the financial position of these investments is considered sufficient to repay debts as and when they are due and payable.