BRADKEN LIMITED ANNUAL REPORT 2014 l 64
Notes to the consolidated financial statements
30 June 2014
(continued)
16 Intangible assets
Goodwill
Customer
Patents,
Licences
Total
lists
trademarks and other
and brands
$'000
$'000
$'000
$'000
$'000
At 1 July 2012
Cost
268,922
100,774
11,644
52,091
433,431
Accumulated amortisation and impairment
(8,759)
(19,095)
(2,606)
(40,543)
(71,003)
Net book amount
260,163
81,679
9,038
11,548
362,428
Year ended 30 June 2013
Opening net book amount
260,163
81,679
9,038
11,548
362,428
Additions
1,519
-
-
8,145
9,664
Foreign exchange variation
13,692
7,996
815
-
22,503
Amortisation charge
-
(7,341)
(1,289)
(3,226)
(11,856)
Closing net book amount
275,374
82,334
8,564
16,467
382,739
At 30 June 2013
Cost
284,133
108,770
12,459
60,236
465,598
Accumulated amortisation and impairment
(8,759)
(26,436)
(3,895)
(43,769)
(82,859)
Net book amount
275,374
82,334
8,564
16,467
382,739
Year ended 30 June 2014
Opening net book amount
275,374
82,334
8,564
16,467
382,739
Additions
-
-
-
3,994
3,994
Foreign exchange variation
(4,171)
(2,384)
(239)
-
(6,794)
Amortisation charge
-
(7,470)
(1,423)
(4,124)
(13,017)
Closing net book amount
271,203
72,480
6,902
16,337
366,922
At 30 June 2014
Cost
279,962
106,386
12,220
64,230
462,798
Accumulated amortisation and impairment
(8,759)
(33,906)
(5,318)
(47,893)
(95,876)
Net book amount
271,203
72,480
6,902
16,337
366,922
Impairment tests for goodwill and other intangibles
Impairment Charge
Key assumptions used for value in use calculations
The calculation of value in use for the CGUs is most sensitive to the following assumptions:
(a) EBITDA/sales margins
(b) Discount rates
(c) Growth rates used to extrapolate cash flows beyond the forecast period
The carrying amounts of goodwill as disclosed in the balance sheet is $45.9m for the Mining Products CGU (2013: $45.9m),
$113.8m for the Mineral Processing CGU (2013: $117.1m), $3.4m for the Rail CGU (2013: $3.4m), ), $85.1m for the Engineered
Products CGU (2013: $86.0m), $15.9m for the Industrial CGU (2013: $15.9m) and $7.1m for the Cast Metal Services CGU
(2013: $7.1m). The Industrial and Cast Metal Services CGU’s are reported in the ‘all other segments’ in Note 5.
The recoverable amount of the CGU is determined based on value-in-use calculations. These calculations use cash flow
projections based on financial forecasts prepared by management covering a five-year period. Cash flows beyond the five-year
period are extrapolated using perpetual growth rates.
There were no impairment charges in the period (2013: $NIL).
The impairment testing has been performed on the following cash generating units (CGUs), Mineral Processing, Mining Products,
Rail, Engineered Products, Industrial and Cast Metal Services.
Page 64
Bradken Limited
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
1...,91,92,93,94,95,96,97,98,99,100 102,103,104,105,106,107,108,109,110,111,...136