Annual Report - Bega Cheese

Financial Statements
Period Financial Ended Statements 30 June 2010
Notes Period to Ended the Financial 30 June Statements
2010
Notes to the Financial Statements
11. Non-Current Assets - Property, Plant and Equipment (cont.)
Company
Period ending 30 June 2010
Construction Land and Plant and Total
in progress buildings equipment
$'000 $'000 $'000 $'000
Balance at the beginning of the period 2,776 39,032 85,160 126,968
Capital expenditure 14,930 - - 14,930
Disposals - - (291) (291)
Depreciation - (1,612) (11,876) (13,488)
Transfers (11,205) 1,016 10,189 -
Balance at the end of the financial period 6,501 38,436 83,182 128,119
Period ending 30 June 2009
Balance at the beginning of the period 2,910 16,741 34,330 53,981
Acquisition through business combinations - 22,105 49,545 71,650
Capital expenditure 10,553 - - 10,553
Disposals - - (88) (88)
Depreciation - (1,197) (7,931) (9,128)
Transfers (10,687) 1,383 9,304 -
Balance at the end of the financial period 2,776 39,032 85,160 126,968
12. Non-Current Assets - Intangible Assets
Consolidated
Company
2010 2009 2010 2009
$'000 $'000 $'000 $'000
Brands 405 405 405 405
Water rights 1,765 1,765 1,765 1,765
Total intangible assets 2,170 2,170 2,170 2,170
Movement in intangibles
Balance at the beginning of the financial period 2,170 405 2,170 405
Acquisition through business combination
Goodwill - 3,615 - 3,615
Water rights - 1,765 - 1,765
Impairment of goodwill - (3,615) - (3,615)
Balance at the end of the financial period 2,170 2,170 2,170 2,170
Brands comprises the "Melbourne'' brand for packing and distribution of cheese products under this label. The brand is
considered to have an indefinite life due to the product life cycle and current market demand. Impairment was further tested
by reviewing the revenue and profits of "Melbourne" brand products.
Water rights were acquired during the prior year as part of the acquisition of the Strathmerton facility. Impairment was tested
by reference to market values. For further details of the Strathmerton facility acquisition, see Note 25.
In the prior year, goodwill was created during the process of an acquisition. Due to the impact of the global financial crisis on
dairy commodity prices and the dairy industry, the goodwill was reviewed for impairment and written off prior to
30 June 2009. For further details on goodwill, see Note 25.
Bega Cheese Limited 2010 Annual Report 38
Bega Cheese Limited 2010 Annual Report 38