|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
16. Intangible assets
Group |
Goodwill |
Licences |
Software |
Others |
Total |
|
|
|
|
|
|
At 1 January 2007 |
|
|
|
|
|
Cost |
388 |
602 |
738 |
764 |
2,492 |
Accumulated amortisation and impairment |
(247) |
(77) |
(93) |
(487) |
(904) |
Net book amount |
141 |
525 |
645 |
277 |
1,588 |
Year ended 31 December 2007 |
|
|
|
|
|
Opening net book amount |
141 |
525 |
645 |
277 |
1,588 |
Additions at cost |
– |
– |
222 |
– |
222 |
Amortisation charge |
– |
(14) |
(112) |
(70) |
(196) |
Closing net book amount |
141 |
511 |
755 |
207 |
1,614 |
At 31 December 2007 |
|
|
|
|
|
Cost |
388 |
602 |
960 |
764 |
2,714 |
Accumulated amortisation and impairment |
(247) |
(91) |
(205) |
(557) |
(1,100) |
Net book amount |
141 |
511 |
755 |
207 |
1,614 |
Year ended 31 December 2008 |
|
|
|
|
|
Opening net book amount |
141 |
511 |
755 |
207 |
1,614 |
Additions at cost |
6 |
144 |
438 |
295 |
883 |
Amortisation charge |
– |
(60) |
(190) |
(82) |
(332) |
Closing net book amount |
147 |
595 |
1,003 |
420 |
2,165 |
At 31 December 2008 |
|
|
|
|
|
Cost |
394 |
746 |
1,398 |
1,059 |
3,597 |
Accumulated amortisation and impairment |
(247) |
(151) |
(395) |
(639) |
(1,432) |
Net book amount |
147 |
595 |
1,003 |
420 |
2,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
Goodwill |
Licences |
Software |
Others |
Total |
At 1 January 2007 |
|
|
|
|
|
Cost |
– |
– |
272 |
330 |
602 |
Accumulated amortisation and impairment |
– |
– |
(49) |
(293) |
(342) |
Net book amount |
– |
– |
223 |
37 |
260 |
Year ended 31 December 2007 |
|
|
|
|
|
Opening net book amount |
– |
– |
223 |
37 |
260 |
Additions at cost |
– |
– |
210 |
– |
210 |
Amortisation charge |
– |
– |
(64) |
(30) |
(94) |
Closing net book amount |
– |
– |
369 |
7 |
376 |
At 31 December 2007 |
|
|
|
|
|
Cost |
– |
– |
482 |
330 |
812 |
Accumulated amortisation and impairment |
– |
– |
(113) |
(323) |
(436) |
Net book amount |
– |
– |
369 |
7 |
376 |
Year ended 31 December 2008 |
|
|
|
|
|
Opening net book amount |
– |
– |
369 |
7 |
376 |
Additions at cost |
– |
– |
393 |
– |
393 |
Transferred to related company |
– |
– |
(1) |
– |
(1) |
Amortisation charge |
– |
– |
(131) |
(5) |
(136) |
Closing net book amount |
– |
– |
630 |
2 |
632 |
At 31 December 2008 |
|
|
|
|
|
Cost |
– |
– |
874 |
330 |
1,204 |
Accumulated amortisation and impairment |
– |
– |
(244) |
(328) |
(572) |
Net book amount |
– |
– |
630 |
2 |
632 |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
As stated in Accounting Policy 2.6 (a), the Company has measured goodwill acquired in business combinations at cost less accumulated impairment losses. Such accounting policy has been prospectively applied with effect from 1 January 2006 in conformity with Revised SLAS 25 - Business Combinations.
Others
As explained in Accounting Policy 2.6 (d), insurance premium paid by the Company to secure foreign loans under the 150K Project Scheme has been deferred on the basis that the benefit of this expenditure is not exhausted in the period in which it is incurred and will be written off to the income statement over a period of 10 years.
Impairment tests for goodwill
Goodwill is allocated to the Group’s Cash-Generating Units (CGUs). A summary of the goodwill allocation is presented below:
|
2008 |
2007 |
Mobitel (Pvt) Limited |
141 |
141 |
Sky Network (Pvt) Limited |
6 |
– |
Total |
147 |
141 |
|
|
|
The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. The growth rate does not exceed the long-term average growth rate for the business in which the CGU operates.
The key assumptions used for value-in-use calculations are as follows:
|
Mobitel (Pvt)
Limited |
Sky Network
(Pvt) Limited |
Gross margin |
75% |
75% |
Growth rate |
29% |
80% |
Discount rate |
20% |
20% |
|
|
|
Management determined budgeted gross margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant operating segments. No impairment charge has been recognised for the year ended 31 December 2008 for the above CGUs (2007 - Rs. Nil). |
|
|
|