Annual report financial statements - Meridian Energy
Annual report financial statements - Meridian Energy
Annual report financial statements - Meridian Energy
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Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011<br />
18. Intangible Assets (continued)<br />
PARENT<br />
SOFTWARE<br />
$’000<br />
LICENCES<br />
$’000<br />
CUSTOMER<br />
ACQUISITION<br />
COSTS<br />
$’000<br />
PATENTS AND<br />
TRADEMARKS<br />
$’000<br />
TOTAL<br />
$’000<br />
Cost or Fair Value<br />
Balance at 1 July 2009 33,676 401 65,174 - 99,251<br />
Acquisitions 8,461 - - 19 8,480<br />
Transfer From Property, Plant and Equipment 17,136 - - - 17,136<br />
Balance at 30 June 2010 59,273 401 65,174 19 124,867<br />
Balance at 1 July 2010 59,273 401 65,174 19 124,867<br />
Acquisitions 11,573 - - 11 11,584<br />
Amalgamation of Subsidiary Companies 144 - - - 144<br />
Disposals (531) - - - (531)<br />
Balance at 30 June 2011 70,459 401 65,174 30 136,064<br />
Accumulated Amortisation and Impairment<br />
Balance at 1 July 2009 (20,509) (401) (58,763) - (79,673)<br />
Amortisation During Year (7,302) - (3,638) (1) (10,941)<br />
Impairment (17,136) - - - (17,136)<br />
Balance at 30 June 2010 (44,947) (401) (62,401) (1) (107,750)<br />
Balance at 1 July 2010 (44,947) (401) (62,401) (1) (107,750)<br />
Amortisation During Year (9,460) - (2,773) (3) (12,236)<br />
Amalgamation of Subsidiary Companies (92) - - - (92)<br />
Disposals 531 - - - 531<br />
Balance at 30 June 2011 (53,968) (401) (65,174) (4) (119,547)<br />
Net Book Value<br />
Net Book Value 30 June 2009 13,167 - 6,411 - 19,578<br />
Net Book Value 30 June 2010 14,326 - 2,773 18 17,117<br />
Net Book Value 30 June 2011 16,491 - - 26 16,517<br />
Goodwill<br />
The goodwill balance represents $6.9<br />
million in relation to Whisper Tech Ltd,<br />
$6.2 million in relation to the acquisition of<br />
<strong>Meridian</strong> <strong>Energy</strong> USA Inc. (formerly named<br />
Cleantech America Inc.) and $2.7 million in<br />
relation to the acquisition of Mt Millar Wind<br />
Farm Pty Ltd.<br />
Whisper Tech LIMITED<br />
For the purpose of impairment testing,<br />
all goodwill is allocated to the cash<br />
generating unit of Whisper Tech Ltd<br />
that includes its interest in Efficient<br />
Home <strong>Energy</strong> S. L., the European based<br />
manufacturing and distribution joint<br />
venture for the AC WhisperGen micro-CHP<br />
device. The impairment test is based on a<br />
value in use discounted cash flow valuation.<br />
Cash flow projections are based on Whisper<br />
Tech’s five year <strong>financial</strong> forecast.<br />
Key assumptions in the value in use calculation for the Whisper Tech cash generating unit are shown in the table below:<br />
ASSUMPTIONS<br />
Sales volumes<br />
Sales price<br />
Costs<br />
Discount rates<br />
METHOD OF DETERMINATION<br />
Minimum volumes as agreed in signed distribution agreements complemented with forecast volumes for additional<br />
distribution agreements. The forecast element is based on volume growth to 3.0–5.0 per cent of the European<br />
boiler market<br />
Prices as agreed in signed distribution agreements<br />
Review of actual costs of production and consideration of impact in a mass production environment<br />
Cash flow projections are discounted using post-tax discount rate scenarios of 12.5 – 25.0 per cent.<br />
34 MERIDIAN ENERGY LIMITED
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