Annual Report 2013 - Mainfreight
Annual Report 2013 - Mainfreight
Annual Report 2013 - Mainfreight
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15 Non-current Assets – Intangible Assets and Goodwill (continued)<br />
(b) Impairment Tests for Goodwill and Brand Names<br />
(i) Description of the cash generating units and other relevant information<br />
Goodwill acquired through business combinations have been allocated to 7 groups of cash generating units (CGU’s) for<br />
impairment testing as follows:<br />
New Zealand Domestic<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 15.3% (2012 15.3%). The long term growth rate used was 2.1%.<br />
New Zealand Air & Ocean<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 15.3% (2012 15.3%). The long term growth rate used was 2.1%.<br />
Australian Domestic<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 15.3% (2012 15.3%). The long term growth rate used was 2.5%.<br />
Australian Air & Ocean<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 15.3% (2012 15.3%). The long term growth rate used was 2.5%.<br />
Americas<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 13.3% (2012 13.3%). The long term growth rate used was 2.2%.<br />
Asia<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on financial<br />
forecasts approved by senior management covering a two year period. The pre-tax discount rate applied to cash flow projections<br />
is 13.2% (2012 13.2%). The long term growth rate used was 1.9%<br />
Europe<br />
The recoverable amount has been determined based on a value in use calculation using cash flow projections based on<br />
financial forecasts approved by senior management covering a three year period. The pre-tax discount rate applied to cash flow<br />
projections is 12.6% (2012 13.3%). The long term growth rate used was 1.5%.<br />
(ii) Carrying amount of goodwill and brand names allocated to each group of cash generating units.<br />
<strong>2013</strong><br />
$000<br />
Group<br />
2012<br />
$000<br />
New Zealand Domestic 12,215 12,215<br />
New Zealand Air & Ocean 6,871 6,871<br />
Australian Domestic 6,168 6,262<br />
Australian Air & Ocean 19,160 19,488<br />
USA 53,744 55,383<br />
Asia 10,092 10,092<br />
Europe 92,173 98,218<br />
200,423 208,529<br />
Financial Statements<br />
101