IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

343

Chapter 30 / Intangible Assets (lAS 38)

15.5 RAINBOW CHICKEN, Annua l Report 2007

Notes to Group Financial Statements 2. Intangible Assets

Trademarks

Goodwill

Total R'OOO

R'OOO

!rJ)J)Q

At I April 2006 Cos t

50,500

287,444

337,944 (50 ,096) 287,848

(50,096)

Acc umulate d amo rtisation and impairment

287,444

404

Net book amount

Year end ed 31 March 2007 Opening net book amount

287,444

287 ,848 (404) 287 ,444

404

(404)

Amortisa tion charge

287,444

Closing net book amount

At 3 1 March 2007 Cost

50,500

287,444

337,944 (50,500)

(50,500) 287,444

Accumulated amortisa tion and impairment

287,444

Net book amount

Trademarks

Trademarks comprise Farmer Brown, Bonny Bird, Farm Fare and Epol, all of which were ac– quired on acquisition of Bonny Bird Farms (Proprietary) Limited and Epol (Proprietary) Limited in 1991.

2007 R'OOO Finite life 15 years Straight-line No Nil

2006 !rJ)J)Q Finite life IS years Straight-line No Nil

Finite life/indefinite life Amorti sation period Method of amortisation

Is intangible title restricted in any way Net book amount pledged as security

Amortisation of trademarks is included in administration expenses (refer to note 15).

12.44 5.0 5 Goodwill Goodwill relates to the acquisition of Vector Logistics (Proprietary) Limited in 2005 . The recov– erable amount of a cash-generating unit is determined based on value-inuse calculations. These cal– culations use cash flow projections based on financial budgets approved by management and future periods based on estimated growth rates. Cash flows beyond a five-year period are extrapolated using the estimated growth rates stated below. Key assumptions used in the goodwill impairment test: Discount rate (%) Perpetu ity growth rate (%) Period (years) 12.81 5.0 5

No impairment was required in the current year or prior year. Sensitivity analysis of assumptions used in the goodwill impairment test: Assumption Discount rate (%)

Movement Impairment Perpetuity growth rate (%)

+5 Nil

+5 Nil

-5 Nil

-5 Nil

Movement Impairment