meteorological service of new zealand ltd
Annual Report 2013
Financial
Statements
42
Notes to the Financial Statements
for the year ended 30 June 2013 (cont.)
Group 2013 Group 2012 Parent 2013 Parent 2012
17.
OTHER INTANGIBLE ASSETS
$000s
$000s
$000s
$000s
Internally Developed Software
Cost
Balance at the Beginning of the Year
13,862
14,521
9,403
8,359
Additions – Internal Software Development
5,114
3,370
2,696
1,999
Disposals
(343)
(4,029)
(334)
(955)
Balance at the End of the Year
18,633
13,862
11,765
9,403
Accumulated Amortisation and Impairment Losses
Balance at the Beginning of the Year
(8,591)
(10,426)
(6,576)
(6,243)
Amortisation Expense – Internal Software Development
(2,867)
(2,191)
(1,467)
(1,288)
Disposals
207
4,026
39
955
Balance at the End of the Year
(11,251)
(8,591)
(8,004)
(6,576)
Carrying Amount
7,382
5,271
3,761
2,827
Capital Work in Progress
Internally Developed Software
3,479
3,483
3,481
3,463
TOTAL CARRYING AMOUNT
10,861
8,754
7,242
6,290
MetraWeather (UK) Intangible Assets
Cost
Balance at the Beginning of the Year
413
430
–
–
Additions – Customer Base and Company Website (Note 15)
–
–
–
–
Revaluation as at 30 June
–
(17)
–
–
Balance at the End of the Year
413
413
–
–
Accumulated Amortisation and Impairment Losses
Balance at the Beginning of the Year
(117)
(31)
–
–
Amortisation Expense – Customer Base and Company Website
(86)
(86)
–
–
Balance at the End of the Year
(203)
(117)
–
–
Carrying Amount
210
296
–
–
The Amortisation Expense has been included in the line item ‘Depreciation and Amortisation Expense’ in the Statements of Comprehensive Income.
Goodwill on Acquisition of MetraWeather (UK) Ltd
Cost
Balance at the Beginning of the Year
600
636
–
–
Revaluation as at 30 June
–
(36)
–
–
Carrying Amount
600
600
–
–
Total Carrying Amount
11,671
9,650
7,242
6,290
MetraWeather (UK) Ltd customer base valuation
The MetraWeather (UK) Ltd customer base is calculated on the net present value, using a discount rate of 18%, of expected revenue net of
direct customer servicing costs over a five year period. The asset is to be amortised over a five year period finishing in February 2016. The
carrying value of the asset as at 30 June 2013 was $205,333 (2012: $283,333). No reasonable change in assumptions leads to an impairment.
Impairment tests for goodwill
Goodwill is allocated to the Metra UK cash-generating unit (CGU). The recoverable amount of the Metra UK CGU has been determined based
on a value-in-use calculation. The calculation used forecast cash flows to 2016 with a pretax growth rate of 5% and a discount rate of 23%.
The recoverable amount of the Metra UK CGU exceeds its carrying amount therefore no impairment loss has been recognised.
