Mainfreight Annual Report 2022

94 95
Notes to the FINANCIAL STATEMENTS
Notes to the FINANCIAL STATEMENTS
14 NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Year Ended
31 March 2021
Land
$000
Buildings
$000
Leasehold
Improvements
$000
Plant,
Vehicles
& Equipment
$000
Leased
Plant,
Vehicles
& Equipment
$000
Work in
Progress
$000
At 1 April 2020,
Net of Accumulated
Depreciation 269,737 294,658 18,931 115,007 3,438 74,804 776,575
Adjustment to opening
balance ### - - - - 7,382 - 7,382
Additions 26,155 2,512 5,039 36,364 2,117 31,861 104,048
Disposals - (157) - (2,733) (106) (533) (3,529)
Transfer Between Asset
Classifications *** - 86,528 - 5,151 29,823 (91,679) 29,823
Revaluations 56,285 - - - - - 56,285
Annual Depreciation - (11,978) (3,181) (25,363) (8,687) - (49,209)
Foreign Exchange
Impact 2,267 303 (1,165) (2,591) (3,206) 1,180 (3,212)
AT 31 MARCH 2021,
NET OF ACCUMULATED
DEPRECIATION 354,444 371,866 19,624 125,835 30,761 15,633 918,163
Cost or Fair Value 354,444 522,713 48,515 321,184 48,632 15,633 1,311,121
Accumulated
Depreciation - (150,847) (28,891) (195,349) (17,871) - (392,958)
NET CARRYING AMOUNT 354,444 371,866 19,624 125,835 30,761 15,633 918,163
###
Last year on 1 April 2020, a further $7,382,000 was added to Leased Vehicles due to the inclusion of the final balloon payment for
those vehicles. A corresponding liability was recognised as an Asset Finance Loan as set out in note 19.
***Last year, a reclassification of $29,823,000 from NZ IFRS 16 Right of Use Lease Assets to leased vehicles was made effective 1 April
2020 - see note 20.
At 31 March 2022 independent registered valuers performed a valuation of the Group's New Zealand and overseas land, buildings
and leasehold improvements.
A summary of the 2022 valuations are:
Registered Valuer
Country
Total
$000
Weighted Average
Capitalisation Rate Valuation 2022
Extensor Advisory Ltd New Zealand 5.47% NZ$618,370,000
Jones Lang LaSalle Australia 4.03% AU$289,880,000
DTZ Zadelhoff V.O.F. Netherlands 6.32% EU€23,823,291
DTZ Zadelhoff BE Belgium 7.35% EU€28,750,397
Galtier Expertise France 6.75% EU€4,493,753
Nica Violeta Cornelia Romania 10.30% EU€6,247,023
GROUP TOTAL
NZ$1,031,956,000
14 NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The element of this valuation related to land has been recorded in the financial statements resulting in the revaluation of land by
$236,037,000 (2021 $153,378,000) above cost. In addition a deferred tax liability of $27,300,000 (2021 $12,284,000) was recorded resulting
in a revaluation reserve of $208,737,000 (2021 $141,094,000).
The element of this valuation related to buildings has not been recorded in the financial statements. If it had been recorded a
revaluation in buildings of $223,119,000 (2021 $190,152,000) would have occurred. In addition, a deferred tax liability of $21,484,000 (2021
$14,515,000) would have needed to be recorded resulting in an increase in the revaluation reserve of $201,635,000 (2021 $175,637,000).
In determining the fair value of land, the valuers have considered relevant general and economic factors and in particular have
investigated recent sales and leasing transactions of comparable properties that have occurred in the relevant locations within which
the assets sit. The valuers have used two principal approaches which are a capitalisation analysis and a direct comparison approach.
The valuations of land have been determined using some inputs that are not observable in the market, namely capitalisation rate and
the cashflows, and as a result these are considered level 3 valuations.
Included in the Group book values above but not in the valuations are Leasehold Improvements of $17,642,000 (2021 $17,505,000).
There were no properties held for sale included in these valuations (2021 nil).
Leased plant, vehicles and equipment is pledged as security for the related asset finance loans.
(b) Carrying Amounts if Land Was Measured at Cost Less Accumulated Impairment
If Land, including properties for sale, was measured using the cost model the carrying amounts would be as follows:
Cost 207,734 201,066
Accumulated Impairment - -
NET CARRYING AMOUNT 207,734 201,066
15 NON-CURRENT ASSETS – INTANGIBLE ASSETS AND GOODWILL
(i) Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination
over the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each
of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the
combination, irrespective of whether other assets or liabilities of the business acquired are assigned to those units or groups of units.
Each unit or group of units to which the goodwill is so allocated:
• Represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and
• Is not larger than a segment based on the Group’s operating segments determined in accordance with NZ IFRS 8 Segment
Reporting.
Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to
which the goodwill relates. When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the
carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit (group of cash-generating
units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the
carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner
is measured based on the relative values of the operation disposed of and the portion of cash-generating unit retained.
Impairment losses recognised for goodwill are not subsequently reversed.
2022
$000
2021
$000