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Chapter 30
/
Intangible Assets (lAS 38)
343
15.5 RAINBOW CHICKEN, Annua l
Report
2007
Notes to Group Financial Statements
2. Intangible Assets
Trademarks
Goodwill
R'OOO
!rJ)J)Q
At
I
April 2006
Cos t
50,500
287,444
Acc umulate d amo rtisation and impairment
(50,096)
Net book amount
404
287,444
Year end ed 31 March 2007
Opening net book amount
404
287,444
Amortisa tion charge
(404)
Closing net book amount
287,444
At 3 1 March 2007
Cost
50,500
287,444
Accumulated amortisa tion and impairment
(50,500)
Net book amount
287,444
287,444
Trademarks
Total
R'OOO
337,944
(50 ,096)
287,848
287 ,848
(404)
287 ,444
337,944
(50,500)
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.
Finite life/indefinite life
Amorti sation period
Method of amortisation
Is intangible title restricted in any way
Net book amount pledged as security
2007
R'OOO
Finite life
15 years
Straight-line
No
Nil
2006
!rJ)J)Q
Finite life
IS
years
Straight-line
No
Nil
12.44
5.0
5
12.81
5.0
5
Amortisation of trademarks is included in administration expenses (refer to note
15).
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)
-5
Nil
+5
Nil
+5
Nil
-5
Nil
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
(%)
Movement
Impairment