Brambles 2006 Annual Report - Alle jaarverslagen

155
Brambles
2006 Annual Report
vi) Notes to the AGAAP reconciliations
a) Discontinued operations and non-current assets held for sale
Under AASB 5: Non-current Assets Held for Sale and Discontinued Operations, the results of a discontinued operation are required to
be shown separately from continuing businesses in the income statement. Comparative information in the income statement is required
to be adjusted, resulting in a consistent presentation of the results of a discontinued operation for all periods shown.
Assets held for sale, and assets of a disposal group (for example, a business operation), together with related liabilities, are required
to be shown separately on the balance sheet, but prior year balance sheet comparatives are not adjusted.
Classification as a discontinued operation is required once it is highly probable that the carrying amount of the asset will be recovered
principally through a sale transaction, rather than through continuing use, subject to meeting other criteria set out in AASB 5. This differs
from AGAAP, where classification as a discontinued operation was primarily required for segment reporting purposes.
Details of discontinued operations are set out in Note 12.
In addition Brambles had certain properties which were being marketed for sale. At 1 July 2004 and 30 June 2005, amounts of
A$13.3 million and A$12.2 million have been presented as assets held for sale, with corresponding decreases in inventory and property,
plant and equipment at those dates.
b) Intangible assets
AASB 138: Intangible assets requires that capitalised software and software development costs be presented as an intangible asset, in
contrast to Brambles’ previous practice of presenting such assets within property, plant and equipment. Additionally, other non-goodwill
intangibles arising after 1 July 2004 which were previously recognised as goodwill have also been reclassified. Reclassification entries
were therefore required on transition to IFRS. Intangibles have increased by A$216.5 million and A$162.8 million in respect to software
capitalised and nil and A$4.5 million in respect of other intangibles at 1 July 2004 and 30 June 2005 respectively, with corresponding
decreases in property, plant and equipment and goodwill. This adjustment is presentational only, and has no impact on the effective life
of the capitalised items or on net assets.
In the consolidated financial report for the half-year ended 31 December 2005, deferred costs of A$7.5 million and A$8.2 million at
1 July 2004 and 30 June 2005 respectively were presented in other non-current assets. They have been presented within intangible
assets in these financial statements.
c) Goodwill
Under AASB 3: Business Combinations, goodwill is no longer amortised but instead is subject to rigorous annual impairment testing.
Brambles has elected to make use of the transitional exemption available under AASB 1: First-time Adoption of Australian Equivalents
to International Financial Reporting Standards and has not restated any business combinations that occurred prior to 1 July 2004.
For the year to 30 June 2005, goodwill amortisation of A$97.6 million booked under AGAAP was reversed, together with a related tax
credit of A$18.0 million. The goodwill balance at 30 June 2005 was A$94.9 million higher under IFRS than under AGAAP, with the related
deferred tax liability under IFRS A$18.0 million lower than under AGAAP.
d) Deferred tax
30 June
2005
A$m
Note
The effects on deferred tax assets are as follows:
Retirement benefit obligations e 68.8 70.3
Other i 3.3 (3.5)
72.1 66.8
The effects on deferred tax liabilities are as follows:
Goodwill c 18.0 –
Operating leases h (1.8) (2.0)
Other i 1.4 5.1
1 July
2004
A$m
17.6 3.1
e) Retirement benefit obligations
Under AASB 119: Employee Benefits, Brambles has recognised as a liability the net deficit in its employer sponsored defined benefit
superannuation funds, based on actuarial calculations of the position of the funds.
Based on actuarial calculations as at 1 July 2004, a defined benefit plan deficit of A$245.4 million was recognised on transition to IFRS,
together with a related deferred tax asset of A$70.3 million. A reclassification of A$8.6 million was made from provisions to defined
benefit plan deficit in relation of pension arrangements already provided. Prepayments of A$5.3 million at 1 July 2004 in relation to
accounting that previously applied under AGAAP were reversed on transition to IFRS. A net transitional adjustment of A$180.4 million
was taken as a reduction in retained earnings.
Brambles has elected to early adopt the amendment to AASB 119 in order to recognise actuarial gains and losses in the statement
of recognised income and expense. Actuarial calculations at 30 June 2005 show that the actuarial result for the year to 30 June 2005
was a loss of A$15.6 million, before a related tax credit of A$4.7 million, and that the defined benefit plan deficit at 30 June 2005 was
A$248.2 million, before a related deferred tax asset of A$72.1 million. The decreased defined benefit plan deficit and related deferred
tax asset have been recognised in the 30 June 2005 financial statements. The actuarial loss and related tax credit have been presented
in the statement of recognised income and expense and have not directly impacted reported profit.