AWB Limited - 2003 Annual Report

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2003
3. PROFIT FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE
Profit from ordinary activities before income tax expense includes
the following specific expenses:
Consolidated
AWB Limited
2003 2002 2003 2002
Notes $'000 $'000 $'000 $'000
Amortisation of non–current assets
– goodwill 2,441 1 – –
– licence fees 26 15 26 15
2,467 16 26 15
Depreciation of non–current assets
– plant and equipment 25,502 13,601 13,972 9,109
– buildings 1,913 866 307 313
27,415 14,467 14,279 9,422
Total depreciation and amortisation expenses 29,882 14,483 14,305 9,437
Write down in value of property plant and equipment to
recoverable amount 7,182 – 7,182 –
Borrowing costs expensed
Interest expense
– wholly owned group – – 901 3,895
– related party (AWB National Pools) 10,353 21,987 – –
– other persons/corporations 57,381 73,716 – 1,194
Other borrowing costs
– other persons/corporations 2,771 2,856 349 (203)
Total borrowing costs 70,505 98,559 1,250 4,886
Research and development costs 6,960 7,030 6,960 7,030
Net (gain) / loss on disposal of property, plant and equipment (21) 1,531 23 1,531
Operating lease rental expense 4,777 2,899 1,853 1,940
Employee benefit expenses 72,350 59,065 54,644 56,663
Net expense for movements in provisions:
– employee benefits (330) 1,049 568 1,286
– restructure costs 5,000 – 5,000 –
– counterparty default relating to other financial assets 8,368 – – –
– onerous contracts 1,548 – – –
Net bad and doubtful debts expensed including movements in
provision for doubtful debts 2,769 (3,478) (2,117) (874)
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