Annual Report 2008-2009 - Emirates.com

Dnata
9. Intangible assets
Cost
124
1 April 2007 85,152
Additions -
Acquisition (Note 25) 214,656
Currency translation differences 43,428
Disposals -
31 March 2008 343,236
Amortisation
1 April 2007 -
Charge for the year -
Currency translation differences -
Disposals -
31 March 2008 -
Net book amount
31 March 2008 343,236
Computer Customer Contractual
Goodwill software relationships rights Total
AED'000 AED'000 AED'000 AED'000 AED'000
102,102
14,474
-
431
(773)
116,234
11,586
58,354 1,159
13,715 2,317
264
-
(746) -
71,587
44,647
11,586
-
-
-
-
3,476
83,404 282,244
- 14,474
272,493 487,149
53,047 96,906
- (773)
408,944
42,920
Computer software includes an amount of AED 18.1 million (2008: AED 15.4 million) in respect of projects under implementation.
880,000
19,286 78,799
19,834 35,866
3,800 4,064
- (746)
117,983
For the purpose of testing goodwill for impairment, goodwill amounting to AED 82.0 million (2008: AED 90.3 million) is allocated to the
airport services cash generating unit in Singapore and AED 217.4 million (2008: AED 249.8 million) is allocated to the airport services
cash generating unit in Switzerland. The recoverable amount for the cash generating unit has been determined on the basis of value-in-
use calculations.
The key assumptions used in the value-in-use calculations for the Singapore and Switzerland cash generating units include a risk
adjusted discount rate, historical gross margins of 15% and 20% respectively and growth rates based on management's expectations
for market development. Cash flow projections for these cash generating units are based on forecasts approved by management
covering a five year period and discount rates of 10% and 8% per annum respectively. Cash flows beyond the five year period have
been extrapolated using growth rates of 3% and 2% respectively. These growth rates do not exceed the long term average growth
rate for the markets in which these cash generating units operate.
8,110
Cost
1 April 2008 343,236 116,234 11,586
Additions - 25,765
-
Acquisition (Note 25) -
-
487
Currency translation differences (40,738) (1,143) -
31 March 2009
Amortisation
302,498 140,856 12,073
1 April 2008 - 71,587 3,476
Charge for the year - 17,001 2,375
Currency translation differences - (883) -
31 March 2009 - 87,705 5,851
Net book amount
31 March 2009 302,498
53,151
6,222
366,024
762,017
408,944 880,000
- 25,765
-
487
(49,610) (91,491)
359,334
814,761
42,920 117,983
37,389 56,765
(6,525) (7,408)
73,784
285,550
167,340
647,421
Goodwill allocated to the travel agency cash generating unit amounts to AED 3.1 million (2008: AED 3.1 million) and is not significant in
comparison to the total carrying amount of goodwill. Further, due to the profitability of this business unit, management is of the opinion
that goodwill is not impaired.