Annual Report 2008-2009 - Emirates.com
Annual Report 2008-2009 - Emirates.com
Annual Report 2008-2009 - Emirates.com
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11. Intangible assets<br />
Cost<br />
1 April 2007 559,491<br />
Additions -<br />
31 March <strong>2008</strong><br />
Amortisation and impairment<br />
559,491<br />
1 April 2007 6,738<br />
Amortisation for the year -<br />
31 March <strong>2008</strong><br />
Net book amount<br />
6,738<br />
31 March <strong>2008</strong> 552,753<br />
Cost<br />
1 April <strong>2008</strong> 559,491<br />
Additions -<br />
Acquisition (Note 37) 2,856<br />
Currency translation differences 180<br />
31 March <strong>2009</strong><br />
Amortisation and impairment<br />
562,527<br />
1 April <strong>2008</strong> 6,738<br />
Amortisation for the year -<br />
31 March <strong>2009</strong><br />
Net book amount<br />
6,738<br />
31 March <strong>2009</strong> 555,789<br />
089<br />
Service Trade Contractual Computer<br />
Goodwill rights names rights software Total<br />
AED'000 AED'000 AED'000 AED'000 AED'000 AED'000<br />
162,333<br />
-<br />
162,333<br />
22,396<br />
10,845<br />
33,241<br />
129,092<br />
162,333<br />
-<br />
-<br />
-<br />
-<br />
19,042<br />
-<br />
-<br />
69,729<br />
169,424<br />
Computer software includes an amount of AED 72.4 million (<strong>2008</strong>: AED 87.4 million) in respect of projects under implementation.<br />
69,729<br />
161,633<br />
47,770<br />
209,403<br />
For the purpose of testing goodwill for impairment, goodwill amounting to AED 159.2 million (<strong>2008</strong>: AED 159.2 million) is allocated to<br />
the consumer goods cash generating unit, AED 25.1 million (<strong>2008</strong>: AED 25.1 million) is allocated to the food and beverages cash<br />
generating unit and AED 368.5 million (<strong>2008</strong>: AED 368.5 million) is allocated to the in-flight catering services cash generating unit.<br />
These cash generating units are based in Dubai. The recoverable amounts for these cash generating units have been determined on<br />
the basis of value-in-use calculations.<br />
The key assumptions used in the value-in-use calculations include a risk adjusted discount rate, growth rates based on<br />
management's expectations for market development and historical gross margins of 15%, 17% and 20% for consumer goods, food<br />
and beverages and in-flight catering services cash generating units respectively. Cash flow projections are based on forecasts<br />
approved by management covering a three year period. Projected cash flows are discounted using a pre-tax discount rate of 12%<br />
per annum, which reflects specific risks relating to the cash generating units. Cash flows beyond the three year period have been<br />
extrapolated using a growth rate of 4% per annum. The growth rate does not exceed the long term average growth rate for the<br />
markets in which the cash generating units operate.<br />
-<br />
-<br />
162,333<br />
33,241<br />
10,815<br />
44,056<br />
118,277<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
19,042<br />
-<br />
-<br />
-<br />
19,042<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
-<br />
16,661<br />
172<br />
16,833<br />
-<br />
-<br />
-<br />
16,833<br />
281,203<br />
350,932<br />
132,499<br />
36,925<br />
181,508<br />
350,932<br />
81,897<br />
-<br />
-<br />
1,003,027<br />
1,072,756<br />
863,353<br />
1,072,756<br />
81,897<br />
38,559<br />
352<br />
432,829 1,193,564<br />
169,424<br />
49,926<br />
209,403<br />
60,741<br />
219,350 270,144<br />
213,479<br />
Goodwill allocated to the food and beverages cash generating unit in Australia amounts to AED 3.0 million (<strong>2008</strong>: AED Nil) and<br />
significant in <strong>com</strong>parison to total carrying amount of goodwill. Management is of the opinion that the goodwill is not impaired.<br />
923,420<br />
is not
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