IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK
343
Chapter 30 / Intangible Assets (lAS 38)
15.5 RAINBOW CHICKEN, Annua l Report 2007
Notes to Group Financial Statements 2. Intangible Assets
Trademarks
Goodwill
Total R'OOO
R'OOO
!rJ)J)Q
At I April 2006 Cos t
50,500
287,444
337,944 (50 ,096) 287,848
(50,096)
Acc umulate d amo rtisation and impairment
287,444
404
Net book amount
Year end ed 31 March 2007 Opening net book amount
287,444
287 ,848 (404) 287 ,444
404
(404)
Amortisa tion charge
287,444
Closing net book amount
At 3 1 March 2007 Cost
50,500
287,444
337,944 (50,500)
(50,500) 287,444
Accumulated amortisa tion and impairment
287,444
Net book amount
Trademarks
Trademarks comprise Farmer Brown, Bonny Bird, Farm Fare and Epol, all of which were ac– quired on acquisition of Bonny Bird Farms (Proprietary) Limited and Epol (Proprietary) Limited in 1991.
2007 R'OOO Finite life 15 years Straight-line No Nil
2006 !rJ)J)Q Finite life IS years Straight-line No Nil
Finite life/indefinite life Amorti sation period Method of amortisation
Is intangible title restricted in any way Net book amount pledged as security
Amortisation of trademarks is included in administration expenses (refer to note 15).
12.44 5.0 5 Goodwill Goodwill relates to the acquisition of Vector Logistics (Proprietary) Limited in 2005 . The recov– erable amount of a cash-generating unit is determined based on value-inuse calculations. These cal– culations use cash flow projections based on financial budgets approved by management and future periods based on estimated growth rates. Cash flows beyond a five-year period are extrapolated using the estimated growth rates stated below. Key assumptions used in the goodwill impairment test: Discount rate (%) Perpetu ity growth rate (%) Period (years) 12.81 5.0 5
No impairment was required in the current year or prior year. Sensitivity analysis of assumptions used in the goodwill impairment test: Assumption Discount rate (%)
Movement Impairment Perpetuity growth rate (%)
+5 Nil
+5 Nil
-5 Nil
-5 Nil
Movement Impairment
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