Notes forming part of the financial statements (continued)
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 14. Non-current assets – Deferred tax assets
The balance comprises temporary differences attributable to:
Doubtful debts
Employee benefits
Takeover advice and compliance costs
Restructure provisions
Claims
Depreciation
Other provisions and accruals
462
5,100
951
56
446
1,570
2,351
531
4,959
1,190
224
389
1,540
3,557
—
—
—
—
—
—
11
—
—
—
—
—
—
124
10,936 12,390 11 124
Amounts recognised directly in equity
Defined benefit asset — (755) — —
10,936 11,635 11 124
Movements
Opening balance 1 July
FX on translation
Credited/(charged) to the income statement
Credited/(charged) to equity
11,635
81
(780)
—
11,794
—
596
(755)
124
—
(113)
—
—
—
124
—
Closing balance 30 June 10,936 11,635 11 124
Deferred tax assets to be recovered after more than 12 months
Deferred tax assets to be recovered within 12 months
10,110
826
10,582
1,053
11
—
124
—
10,936 11,635 11 124
Goodwill Trade names Total
$’000 $’000 $’000
Note 15. Non-current assets – Intangible assets
Consolidated
At 1 July 2005
Cost 10,916 22,679 33,595
Less : Accumulated amortisation and impairment (10,726) (2,555) (13,281)
Net book amount 190 20,124 20,314
Year ended 30 June 2006
Opening net book amount 190 20,124 20,314
FX on translation (21) (410) (431)
Closing net book amount 169 19,714 19,883
At 30 June 2006
Cost 10,773 22,216 32,989
Less : Accumulated amortisation and impairment (10,604) (2,502) (13,106)
Net book amount 169 19,714 19,883
Year ended 30 June 2007
Opening net book amount 169 19,714 19,883
FX on translation 19 376 395
Closing net book amount 188 20,090 20,278
At 30 June 2007
Cost 10,904 22,640 33,544
Less : Accumulated amortisation and impairment (10,716) (2,550) (13,266)
Net book amount 188 20,090 20,278
Impairment tests for goodwill and trade names
Goodwill and trade names are allocated to the Group’s cash-generating units
(CGUs) identified according to business segment and
country of origin. The carrying amount of goodwill of $188,000 (2006: $169,000)
and trade names with a carrying value of $3,819,000
(2006: $3,443,000) relate to the Group’s New Zealand operations.
The recoverable amount of a CGU is determined based on value in use calculations.
These calculations use cash flow projections based
on financial budgets developed by management covering a three year period.
The cash flows are discounted using an after tax cost of
capital of 10.5% and a long-term growth rate of 2.9%. The key assumptions used
by management relate to forecast prices and sales
volumes for the next three years. These assumptions are in line with past experience.
The method and key assumptions are the same as
used in the preceding year.
Note 16. Non-current assets – Retirement benefit asset
(a) Superannuation Plan
All employees of the Group are entitled to benefits from the Group’s superannuation
plans on retirement, disability or death. The plans
provide benefits either on a defined benefit or defined contribution basis.
The Group participates in one major defined benefits plan, the
Wattyl Superannuation Plan (WSP). The WSP provides lump sum benefits based
on years of service and final average salary. The defined
contribution plans receive fixed contributions from Group companies and the
Group’s legal and constructive obligation is limited to
these contributions.
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
(b) Balance sheet amounts
The amounts recognised in the balance sheet are determined as follows:
Present value of the defined benefit obligation
Fair value of the defined benefit plan assets
23,117
(26,140)
26,771
(27,902)
—
—
—
—
Asset recognised in balance sheet (3,023) (1,131) — —
(c) Categories of plan assets
The major categories of plan assets are as follows:
Equity instruments
Debt instruments
Property securities
Other assets
16,860
7,581
1,516
183
18,918
7,506
1,366
112
—
—
—
—
—
—
—
—
26,140 27,902 — —
(d) Reconciliations
Reconciliation of the present value of the defined benefit
obligation, which is partly funded:
Balance at the beginning of the year
Current service cost
Interest cost
Contributions by plan participants
Actuarial (gains) and losses
Benefits and expenses paid
26,771
1,049
1,095
239
1,141
(7,178)
28,339
1,677
1,044
302
1,545
(6,136)
—
—
—
—
—
—
—
—
—
—
—
—
Balance at the end of the year 23,117 26,771 — —
Reconciliation of the fair value of plan assets:
Balance at the beginning of the year
Expected return on plan assets
Contributions by Group companies
Contributions by plan participants
Actuarial (gains) and losses
Benefits and expenses paid
27,902
1,690
980
239
2,507
(7,178)
26,511
1,703
1,472
302
4,050
(6,136)
—
—
—
—
—
—
—
—
—
—
—
—
Balance at the end of the year 26,140 27,902 — —
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