| 22.1 | DISCONTINUED OPERATIONS |
As at 30 September 2019, Avis Fleet was disclosed as held for sale and a discontinued operation on the basis of management's firm intention to dilute Barloworld's interest in Avis Fleet to a 50% shareholding. Management have subsequently reconsidered this decision and concluded that this initiative will be placed on hold. This position will be re-assessed at the appropriate time and in the context of the Group's strategy and optimal portfolio mix. Going forward Avis Fleet will be presented as part of continuing operations and the 2019 financial statements have been restated accordingly. Refer to note 36 for further details. |
| 2020 Rm |
Restated 2019 Rm |
||
|---|---|---|---|
| Results from discontinued operations as reported are as follows: | |||
| Current year adjustment to the profit on disposal of Equipment Iberia^ | 33 | ||
| Profit from discontinued operations per income statement | 33 |
| ^ | In the previous year, certain tax uncertainties related to our Iberian operations were resolved resulting in the reversal of previously held provisions totalling R33 million. This was a change in estimates in the year and as such it was accounted for prospectively through non-operating and capital items in the income statement. |
| 22.2 | ASSETS CLASSIFIED AS HELD FOR SALE |
| The major classes of assets and liabilities classified as held for sale are as follows: |
| 2020 | Total Held for Sale Rm |
Equipment1 Rm |
|
|---|---|---|---|
| Property | 29 | 29 |
| 1. | The Equipment division has taken the decision to dispose of non-core properties. The resolution to sell the properties was taken in the current financial year and therefore the properties are classified as held for sale as at 30 September 2020. |
| There have been unexpected delays in the commencement of the Barlow Park property as a result of the outbreak of COVID-19 in the current year and management have decided to revise their decision at this stage resulting in the property no longer shown as held for sale in the current financial year. |
| 2019 Restated | Total
Held for Sale Rm |
Equipment1 | Logistics2 | Corporate3 | |
| Property, plant and equipment | 175 | 70 | 12 | 93 | |
| Intangible assets | 2 | 2 | |||
| Deferred tax asset | 16 | 16 | |||
| Inventories | 13 | 13 | |||
| Trade and other receivables | 92 | 92 | |||
| Cash and cash equivalents | 29 | 29 | |||
| Total assets classified as held for sale* | 327 | 70 | 164 | 93 | |
| Total current payables | (60) | (60) | |||
| Short-term provisions | (18) | (18) | |||
| Total liabilities associated with assets classified as held for sale** | (78) | (78) | |||
| Net assets classified as held for sale | 249 | 70 | 86 | 93 |
| 1. | This refers to properties within the Equipment division that are in the process of being sold. | |
| 2. | Assets held for sale in the Logistics business included Middle East and SmartMatta. These businesses were sold in the year. | |
| 3. | The assets held for sale within the Corporate division relate to the Barlow Park property owned by Barloworld Limited which is in the process of being sold to a consortium of investors with the aim of redeveloping the site into a multi-use precinct. | |
| * | Includes financial assets of R121 million | |
| ** | Includes financial liabilities measured at amortised cost of R60 million | |