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Notes To The Consolidated Financial Statements
Notes To The Consolidated Financial Statements
for the year ended 31 December 2012
BD’000
for the year ended 31 December 2012
BD’000
5 PROPERTY AND EQUIPMENT
6 GOODWILL (continued)
Land and
buildings
Network
assets &
telecom
equipment
Motor vehicles,
furniture, fittings &
office equipment
Assets under
construction
Total
2012
Cost
At 1 January 71,126 398,565 35,335 24,935 529,961 522,636
Additions 2,606 16,099 1,030 11,514 31,249 26,634
Projects completed 80 22,816 1,247 (19,749) 4,394 3,574
Disposals (4,196) (36,362) (1,297) - (41,855) (22,883)
At 31 December 69,616 401,118 36,315 16,700 523,749 529,961
Depreciation
At 1 January 46,642 269,168 29,132 - 344,942 331,162
Charge for the year 845 27,206 2,663 - 30,714 33,462
Disposals - (36,465) (1,307) - (37,772) (19,682)
At 31 December 47,487 259,909 30,488 - 337,884 344,942
Net book value
At 31 December 2012 22,129 141,209 5,827 16,700 185,865 185,019
At 31 December 2011 24,484 129,397 6,203 24,935 185,019
Land and buildings include certain property at Hamala, Kingdom of Bahrain with a carrying value of BD 56 (2011: BD 56) held
as investment property for earning rentals or capital appreciation. The fair value of the property as at 31 December 2012 was
BD 10,060 (2011: BD 10,060). The fair value of the property was determined by a registered independent appraiser having an
appropriate recognised professional qualification and experience in the location and category of the property being valued. Fair
values were determined having regard to recent market transactions for similar properties as the Company’s property.
For a list of properties owned and rented by the Company, please refer to note 28.
Total
2011
(iii) The above estimates were tested by the Group for sensitivity in the following areas:
• An increase / decrease in the discount rate and the long term growth rates used
• A change in market share
• A decrease in future planned revenues and EBITDA margins
• An increase in capex to sales ratio forecasts
The results of the sensitivity testing revealed that the value in use calculations is sensitive to the above changes, although these
did not result in a materially significant change in the carrying value of the goodwill and related assets.
7 INTANGIBLE ASSETS
2012 2011
Cost
At 1 January 67,969 68,305
Additions during the year 32,368 464
Disposals during the year (249) (800)
At 31 December 100,088 67,969
Amortisation
At 1 January 43,661 39,901
Charge for the year 5,659 4,523
Disposals during the year (112) (763)
At 31 December 49,208 43,661
Net book value at 31 December 50,880 24,308
6 GOODWILL
2012 2011
Cost
At 1 January 124,682 125,129
Exchange rate adjustments (305) (447)
At 31 December 124,377 124,682
a) Analysis of Goodwill
Goodwill acquired in business combination is allocated to “Jordan” for the purposes of segment reporting.
b) Impairment of Goodwill
(i) The Group tests for impairment of goodwill annually, or more frequently if there are any indications that impairment may have
arisen. The recoverable amount of a Cash Generating Unit is determined based on the higher of fair values less costs to sell and
value-in-use calculations. Fair values less costs to sell are estimated by using the capitalised earnings approach and comparing
the same with those of other telecom companies within the region.
(ii) The key assumptions for the value-in-use calculations are those relating to discount rates, the long term growth rates,
penetration and market share assumptions, average revenues per user, earnings before interest, taxation, depreciation and
amortization (“EBITDA”) and capital expenditure to sales ratio. These calculations use cash flow projections based on financial
budgets approved by management, covering the period of the validity of the telecom license. Cash flows are extrapolated
using the estimated growth rates. The weighted average growth rates are consistent with forecasts. No impairment losses were
recognised in 2012 (2011: BD Nil).
8 INVESTMENT IN ASSOCIATES
2012 2011
At 1 January 78,580 130,124
Receipts from associates (2,762) (1,930)
Share of profit/(loss) (net) 1,599 (3,124)
Share of currency translation (loss)/gain - (17)
Investment classified as held for sale investment (Note 9) - (46,473)
At 31 December 77,417 78,580
The summarized aggregate financial information of the associates is as follows:
2012* 2011
Assets 150,747 132,814
Liabilities 126,349 115,915
Revenues 82,610 70,663
Profit/(loss) 7,499 (9,123)
* Unaudited and as of 30 November 2012.
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Batelco
ANNUAL REPORT 2012
Batelco
ANNUAL REPORT 2012
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