Annual Report - Campus Living Villages

Campus Living Villages Annual Report 09/10 1 3 1
Campus Living Overseas Trust
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
A$’000
14. Intangible assets
goodwill
other
INtangibles
TOTAL
CLOT
June 2010
Cost or fair value 2,721 17,613 20,334
Accumulated amortisation - (2,906) (2,906)
Net book amount 2,721 14,707 17,428
Reconciliation of opening to closing net book amount
Opening net book amount 2,855 15,525 18,380
Amortisation - (1,040) (1,040)
Foreign currency movements (134) 222 88
Closing net book amount 2,721 14,707 17,428
June 2009
Cost or fair value 2,855 18,222 21,077
Accumulated amortisation - (2,697) (2,697)
Net book amount 2,855 15,525 18,380
Reconciliation of opening to closing net book amount
Opening net book amount 2,411 16,295 18,706
Amortisation - (1,184) (1,184)
Foreign currency movements 444 414 858
Closing net book amount 2,855 15,525 18,380
Goodwill
Goodwill relates to the Management businesses. Goodwill is not amortised and is subject to an annual impairment test.
The recoverable amount is determined by value-in-use calculations.
The value-in-use calculations use cash flow projections based on financial budgets in the Fund valuation model adjusted for latest
market conditions and business developments.
The key assumptions in the cash flow forecasts are rental growth (4%), facility management fee income growth (3%), capital
expenditure growth (3%) and discount rate 10.0% (2009: 11.5%). The recoverable amounts of the US Management non-current assets
are $18.4m (2009: $19m) which is in excess of the carrying amount of $9m (2009: $10m). Management do not consider changes
in the underlying assumptions to have a significant effect on the recoverable amount and possible impairment of goodwill. Other
intangibles include management and student contracts.
Other Intangibles
Other Intangibles include student and management contracts. Management contracts acquired as part of a business combination
are recognised separately from goodwill. The management contracts are carried at their fair value at the date of acquisition less
accumulated amortisation and impairment losses. Amortisation of management contracts is calculated based on the timing of
projected cash flows of the contracts over their estimated useful lives, which currently vary from 20 to 30 years.