annual report - Harvey Norman Company Reports & Announcements

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
14. Intangible Assets (Non-Current) (continued)
(a) Computer Software
Computer software is carried at cost less accumulated amortisation and accumulated impairment losses. The
intangible asset has been assessed as having a finite life and is amortised using the straight-line method over a period
of no greater than 7.5 years. If impairment indicators are present, the recoverable amount is estimated and an
impairment loss is recognised to the extent that the recoverable amount is lower than the carrying amount.
(b) Impairment of Computer Software
During the year ended 30 June 2012, the consolidated entity reviewed the capitalised software costs incurred in
relation to the merchandising and supply-chain improvements program. During this review management identified
certain specific elements of design and scope of the program that no longer contained future economic benefits for
the consolidated entity. The consolidated entity had written off $2.36 million of specific costs that were no longer
aligned with the current design and strategic direction of the program.
(c) Goodwill
After initial recognition, goodwill acquired in a business combination is measured at cost less any accumulated
impairment losses. Goodwill is not amortised but is subject to impairment testing on an annual basis whenever there is
an indication of impairment.
Pertama Holdings Limited, Singapore
The recoverable amount of the cash generating unit of Pertama Holdings Limited, Singapore has been determined
based on a fair value less costs to sell calculation as the asset, being the shares held by the consolidated entity in
Pertama Holdings Limited, Singapore, are traded in an active market. Based on the annual impairment review, the
goodwill recognised in respect of Pertama Holdings Limited, Singapore is not impaired.
15. Trade and Other Payables (Current)
C O N S O L I D A T E D
2012 2011
$000 $000
Trade creditors 553,570 701,823
Accruals 49,957 77,761
Other creditors 43,752 75,313
Total trade and other payables (current)
16. Interest-Bearing Loans and Borrowings (Current)
647,279
854,897
Secured:
Non trade amounts owing to:
- Bank overdraft (a) 32,366 44,050
- Commercial bills payable (b) 9,750 15,075
- Other short-term borrowings (c) 146,675 -
Unsecured:
Derivatives payable 1,199 -
Lease liabilities (d) Note 32 (b)(i) 117 168
Non trade amounts owing to:
- Directors (e) 32,406 36,944
- Other related parties (e) 12,253 8,844
- Other unrelated persons 110 194
Total interest-bearing loans and borrowings (current)
234,876
105,275
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