Air New Zealand 2011 Annual Report Download - page 26

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11. INTANGIBLE ASSETS
GROUP
2011
$M
GROUP
2010
$M
COMPANY
2011
$M
COMPANY
2010
$M
Intangible assets comprise:
Internally developed software 40 30 37 27
Externally purchased software 13 12 12 11
Development costs * 2---
Goodwill ** 1 1 - -
56 43 49 38
INTERNALLY DEVELOPED SOFTWARE
Cost 125 117 120 113
Accumulated amortisation (95) (95) (93) (93)
Carrying value at the beginning of the year 30 22 27 20
Additions 23 17 21 15
Amortisation (13) (9) (11) (8)
Carrying value at end of the year 40 30 37 27
Represented by:
Cost 134 125 127 120
Accumulated amortisation (94) (95) (90) (93)
Carrying value at end of the year 40 30 37 27
EXTERNALLY PURCHASED SOFTWARE
Cost 186 194 180 189
Accumulated amortisation (172) (178) (169) (175)
Provision for impairment (2) - - -
Carrying value at the beginning of the year 12 16 11 14
Additions 7 5 6 3
Amortisation (6) (7) (5) (6)
Impairment losses recognised during the year - (2) - -
Carrying value at end of the year 13 12 12 11
Represented by:
Cost 180 186 173 180
Accumulated amortisation (165) (172) (161) (169)
Provision for impairment (2) (2) - -
Carrying value at end of the year 13 12 12 11
* Development costs arise from the Group’s engineering activities and will be applied to external customer products and services.
There were $2 million of additions in the year ended 30 June 2011 (30 June 2010: Nil).
** Goodwill was assessed for impairment as at 30 June 2011 using a value in use model. No impairment provision is considered to be
required. The discount rate applied in the value in use model as at 30 June 2011 was 10.0% (30 June 2010: 10.0%).
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2011
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011