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96<br />
Next Media Limited annual report 06 07<br />
17. INTANGIBLE ASSETS<br />
Notes to the Consolidated Financial Statements (<strong>co</strong>ntinued)<br />
Masthead<br />
and<br />
publishing<br />
rights<br />
HK$’000<br />
THE GROUP<br />
COST<br />
At 1 April 2005, 31 M<strong>ar</strong>ch 2006 and 31 M<strong>ar</strong>ch 2007 1,482,799<br />
ACCUMULATED IMPAIRMENT<br />
At 1 April 2005 136,918<br />
Impairment loss re<strong>co</strong>gnised for the ye<strong>ar</strong> 45,000<br />
At 31 M<strong>ar</strong>ch 2006 and 31 M<strong>ar</strong>ch 2007 181,918<br />
CARRYING VALUES<br />
At 31 M<strong>ar</strong>ch 2007 1,300,881<br />
At 31 M<strong>ar</strong>ch 2006 1,300,881<br />
The masthead and publishing rights <strong>ar</strong>e <strong>co</strong>nsidered by the management of the Group as having an indefi nite useful life because it is expected to <strong>co</strong>ntribute to net cash<br />
infl ows indefi nitely. It will be tested for impairment annually and whenever there is an indication that it may be impaired. P<strong>ar</strong>ticul<strong>ar</strong>s of the impairment testing <strong>ar</strong>e disclosed<br />
in note 18.<br />
As at 31 M<strong>ar</strong>ch 2006, the Directors reviewed the business valuation, the anticipated profi tability and the anticipated future <strong>op</strong>erating cash fl ows of the masthead and<br />
publishing rights. With reference to the fi nancial results and anticipated future <strong>op</strong>erating cash fl ows, due to recurring loss and anticipated negative <strong>op</strong>erating cash fl ows<br />
for one of the cash generating units (“CGUs”) included in the books and magazines publication segment, Easy Finder I.P. Limited, the Directors of the Company identifi ed<br />
an impairment loss in respect of masthead and publishing rights of approximately HK$45,000,000.