Annual Report - JD Group

Notes to the Group annual financial statements continued
44
2004 2003
Rm Rm
10. Goodwill
Cost
Opening balance 202 209
Acquisition of BoConcept – 8
Translation adjustment 2 (15)
Removal of BoConcept goodwill (52) –
152 202
Accumulated amortisation
Opening balance 160 155
Amortisation 2 5
Impairment due to closure of BoConcept 42 –
Removal of BoConcept accumulated amortisation (52) –
152 160
Net book value – 42
11. Trademark
Cost
Profurn trademark acquired – provisional 329 329
Adjustment to Profurn fair values at acquisition (136) –
Final cost 193 329
Accumulated amortisation
Opening balance 14 –
Amortisation 14 14
28 14
Net book value 165 315
The excess of the purchase consideration made over the fair value of the net assets
acquired from Profurn was recognised as a provisional trademark in the prior year.
The fair values of these assets and liabilities have been finalised as follows: Revised Provisional
Property, plant and equipment 64 64
Deferred taxation 216 206
Inventories 274 271
Trade and other receivables 1 561 1 509
Taxation (67) (66)
Interest bearing liabilities (63) (63)
Trade and other payables (954) (1 003)
Investments and loans 29 52
Treasury shares 18 13
Bank overdraft (59) (59)
Trademark 193 329
Deferred taxation on trademark (58) (99)
Net book value 1 154 1 154
The trademark decreased by R136 million with the associated deferred tax liability decreasing by R41 million. The impact of this
restatement on the amortisation is a reduction of R5,7 million in the current year. The amortisation period remains 10 years from the
effective date of acquisition. The amortisation charge for future years would therefore approximate R19,3 million per annum.