AnnuAl REPORT 2011-2012 - Sbs

NOTES TO THE FINANCIAL STATEMENTS
8(d) Analysis of property, plant and equipment, and intangibles (cont.)
Reconciliation of the opening and closing balances of intangibles (2010–11)
CoNsoLIDAteD
GooDWILL
$’000
tRADeMARk
$’000
CoNtRACt
RIGHts
$’000
CoMPUteR
soFtWARe
$’000
totAL
$’000
As at 1 July 2010
Gross Book Value 11,497 112 241 7,928 19,778
Accumulated depreciation/amortisation – – (25) (4,466) (4,491)
opening net book value 11,497 112 216 3,462 15,287
Additions – by purchase
Revaluations recognised in other
– – – 1,703 1,703
comprehensive income (equity) – – – – –
Amortisation expense – – (40) (1,183) (1,223)
Disposals
From disposal of operations – – – – –
Other disposals – – – (3) (3)
Net book value as at 30 June 2011
Net book value is represented by:
11,497 112 176 3,979 15,764
Gross Book Value 11,497 112 241 9,424 21,274
Accumulated depreciation/amortisation – – (65) (5,445) (5,510)
Closing net book value 11,497 112 176 3,979 15,764
Intangibles relating to goodwill, trademark and contract rights.
In 2010, the consolidated entity recognised additional goodwill of $2.254m following the purchase of the remaining 60%
issued capital of PAN TV Ltd by the Corporation’s controlled entity, STV Ltd (which previously owned 40% of PAN TV
Ltd’s issued capital).
An independent valuer also valued the identifiable assets of PAN TV on acquisition as $0.353m ( $0.112m for trademark,
and $0.241m for contract rights for the World Movies channel). Trademark is not amortised as it has an indefinite useful
life, but is assessed annually for impairment.
In 2009, the Corporation recognised goodwill of $9.243m following the restructure of the media representation
function of the Corporation (previously outsourced) and the resulting acquisition of a business unit. In line with AASB 3
“Business Combinations”, goodwill was recognised as the difference between the consideration paid and the fair value
of identifiable net assets which was nil.
Goodwill is not amortised but is assessed annually for impairment (based on its “value in use” calculated as the net
present value of estimated future net cash inflows of the cash-generating unit (CGU) to which it has been allocated). In
2012, the amount of goodwill recognised was reviewed, using estimated cash inflows assuming a risk adjusted pre-tax
discount rate of 13% (2011: 15%), growth rate of 2% in perpetuity (2011: 4% to 2015 and 3% thereafter). On that basis,
goodwill was assessed as not impaired.
104 SBS