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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes continued
for the 12 months to 31 December 2016
15. INTANGIBLES
Goodwill
Other intangibles
1
Total intangibles
Note
$m
$m
$m
At 1 January 2015
Cost or fair value
376.1
293.9
670.0
Accumulated amortisation and impairment
(12.3)
(101.7)
(114.0)
Net book amount
363.8
192.2
556.0
Year ended 31 December 2015
Opening net book amount
363.8
192.2
556.0
Additions
-
15.3
15.3
Disposals
-
(4.2)
(4.2)
Impairment
(2.7)
-
(2.7)
Amortisation
-
(47.2)
(47.2)
Effects of exchange rate fluctuations
9.3
0.9
10.2
Closing net book amount
370.4
157.0
527.4
Year ended 31 December 2015
Cost or fair value
385.6
273.6
659.2
Accumulated amortisation and impairment
(15.2)
(116.6)
(131.8)
Net book amount
370.4
157.0
527.4
Year ended 31 December 2016
Opening net book amount
370.4
157.0
527.4
Acquisitions
29
542.2
83.7
625.9
Additions
-
13.9
13.9
Disposals
-
(1.0)
(1.0)
Impairment
-
(10.0)
(10.0)
Amortisation
-
(32.5)
(32.5)
Effects of exchange rate fluctuations
1.4
0.8
2.2
Closing net book amount
914.0
211.9
1,125.9
Year ended 31 December 2016
Cost or fair value
927.6
369.2
1,296.8
Accumulated amortisation and impairment
(13.6)
(157.3)
(170.9)
Net book amount
914.0
211.9
1,125.9
1
Other intangibles include:
IT software systems of $127.4 million with a useful life of up to 7 years (31 December 2015: $126.6 million up to 4 years);
Customer contracts with useful lives of:
o
2 to 5 years $29.2 million (31 December 2015: $4.3 million); and
o
10 to 15 years $39.2 million (31 December 2015: $nil);
Wai Ming engineering license of $2.1 million with an indefinite useful life (31 December 2015: $2.1 million); and
Devine brand name of $14.0 million (31 December 2015: $24.0 million) with an indefinite useful life. The model used to calculate
recoverable amount utilises the royalty relief method and a royalty rate of 0.6% (31 December 2015: 0.6%). The model uses five
year cash flow projections and long term growth rates of 3.0% (31 December 2015: 3.0%). A pre-tax discount rate of 11.0% (31
December 2015: 11.5%) has been used in discounting the projected cash flow.
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