2009-10 Annual Report - Australia Post

15 Investment property
opening balance as at 1 July
additions
net transfer to investment property
disposals
net (loss) from fair value adjustments
2010
$m
consolidated corporation
Closing balance as at 30 June 224.9 219.5 224.9 219.5
219.5
1.7
3.7
–
–
2009
$m
238.4
0.5
2.9
(3.5)
(18.8)
investment properties are stated at fair value, which has been determined based on valuations performed by savills pty ltd for all property
as at 30 June 2010 and 30 June 2009. savills is an industry specialist in valuing these types of investment property. the fair value considers
the capitalised rental streams where the property is leased to a third party and the amount at which the assets could be exchanged between
a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction at the date of valuation, in accordance with
australian Valuation standards.
in determining fair value, the expected net cashflows applicable to each property have been discounted to their present value using a market
determined, risk-adjusted, discount rate applicable to the respective asset.
16 Impairment testing of goodwill
Goodwill acquired through business combinations has been
allocated to individual cash generating units as follows:
Messenger post
the printsoft eletter Group
other
2010
$m
9.9
–
1.4
2010
$m
219.5
1.7
3.7
–
–
2009
$m
241.3
0.5
–
(3.5)
(18.8)
consolidated corporation
2009
$m
19.9
9.1
1.4
2010
$m
9.9
–
1.4
2009
$m
19.9
–
1.4
11.3 30.4 11.3 21.3
the recoverable amount of all cGus has been determined based on a value in use calculation using cashflow forecasts extracted from three year
corporate plans approved by senior management and the board. the forecasts are extrapolated for a further two years and a terminal value is
applied. these forecasts use management estimates to determine income, expenses, capital expenditure and cashflows for each cGu. revenue
growth rates applied by all cash generating units to the two year period outside the corporate plan are 4.0% (2009: 4.0%). after this period a 1.5% to
2.5% (2009: 1.5% to 2.5%) revenue growth rate is applied. a pre-tax discount rate applicable to the specific cash generating unit has been applied.
these rates are between 11.8% and 12.5% (2009: 13.1% and 13.2%).
at 30 June 2010, the carrying value of goodwill for the Messenger post and the printsoft eletter Group cGus were tested for impairment based on
value in use. this test resulted in an impairment charge of $19.1 million (2009: $24.4 million) being recognised in the consolidated accounts against
goodwill and $10.0 million (2009: $33.1 million) in the corporation’s accounts.
Management believes that any reasonably possible change in the key assumptions would not cause the carrying amount of any cash generating units
containing goodwill to exceed their recoverable amount.
AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports 73