Nextmedia ar cover 21june op.co

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96 Next Media Limited annual report 06 07 17. INTANGIBLE ASSETS Notes to the Consolidated Financial Statements (continued) Masthead and publishing rights HK$’000 THE GROUP COST At 1 April 2005, 31 March 2006 and 31 March 2007 1,482,799 ACCUMULATED IMPAIRMENT At 1 April 2005 136,918 Impairment loss recognised for the year 45,000 At 31 March 2006 and 31 March 2007 181,918 CARRYING VALUES At 31 March 2007 1,300,881 At 31 March 2006 1,300,881 The masthead and publishing rights are considered by the management of the Group as having an indefi nite useful life because it is expected to contribute to net cash infl ows indefi nitely. It will be tested for impairment annually and whenever there is an indication that it may be impaired. Particulars of the impairment testing are disclosed in note 18. As at 31 March 2006, the Directors reviewed the business valuation, the anticipated profi tability and the anticipated future operating cash fl ows of the masthead and publishing rights. With reference to the fi nancial results and anticipated future operating cash fl ows, due to recurring loss and anticipated negative operating cash fl ows 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 an impairment loss in respect of masthead and publishing rights of approximately HK$45,000,000.
97 18. IMPAIRMENT TESTING ON INTANGIBLE ASSETS WITH INDEFINITE-USEFUL LIVES As explained in note 8, the Group uses business segments as its primary segment for reporting segment information. For the purposes of impairment testing, masthead and publishing rights with indefi nite useful lives set out in note 17 have been allocated to two individual CGUs, including one subsidiary in newspapers publication and printing segment and one subsidiary in books and magazines publication segment. The carrying amounts of masthead and publishing rights (net of accumulated impairment losses) allocated to these units are as follows: Masthead and publishing rights 2007 2006 HK$’000 HK$’000 Newspaper publication and printing - Apple Daily I.P. Limited 1,020,299 1,020,299 Books and magazines publication - Next Media I.P. Limited 280,582 280,582 1,300,881 1,300,881 The recoverable amounts of masthead and publishing rights have been determined on the basis of value in use calculations. Their recoverable amounts are based on certain similar key assumptions. Value in use calculations use cash fl ow projections based on fi nancial budgets approved by management covering a 5-year period with an annual growth rate of 3% (2006: 3%), and a discount rate of 12.7% (2006: 10.25%). Cash fl ow projections beyond the 5-year period are extrapolated using a steady 3% growth rate. This growth rate is based on the relevant industry growth forecasts and does not exceed the average long-term growth rate for the relevant industry. Cash fl ow projections during the budget period for CGUs are also based on the expected gross margins during the budget period and the same raw materials price infl ation during the budget period. Budgeted gross margins and raw material price infl ation have been determined based on past performance and management’s expectations for the market development. Management believes that any reasonably possible change in any of these assumptions would not cause the aggregate carrying amount of CGUs to exceed the aggregate recoverable amount of above CGUs.
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Lighting Up Our Lives
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Next Media Limited annual report 06
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Next Media Limited annual report 06
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11 Chairman’s Statement A Flexibl
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13 I continue to believe strongly t
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15 Profi t for the year HK$ million
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17 Management Discussion and Analys
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19 Taiwan The people of Taiwan have
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21 1,198,000 at mid-year 2006. Thes
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23 Hong Kong Next Magazine Despite
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25 The dominant position of Taiwan
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27 EBITDA and Segment Results The G
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29 Share Capital Structure During t
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31 In regard to the revaluation def
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33 Group Commitments Number of staf
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35 During the 2006/07 fi nancial ye
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37 Next Media endeavours to ensure
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39 Corporate Governance The Board o
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41 The Company has a policy of prov
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43 All members of the Audit Committ
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Page 55 and 56: 53 Directors’ Report The Director
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Page 59 and 60: 57 (b) Share Option Schemes of subs
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Page 63 and 64: 61 (b) Interests in Associated Corp
Page 65: 63 Directors’ Interests in Contra
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Nextmedia ar cover 21june op.co

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