McPHERSON’S LIMITED
ANNUAL REPORT 2015
65
(B) ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
2015
$’000
2014
$’000
Inventories
19,676
26,136
Property, plant and equipment
102
428
Intangible assets
24,010
26,409
Deferred tax assets
117
308
Total assets classified as held for sale
43,905
53,281
Employee benefits
397
1,027
Deferred tax liabilities
6,050
6,847
Total liabilities directly associated with assets classified as held for sale
6,447
7,874
As part of the Group’s plan to divest its Housewares business to the Fackelmann Group, the Group has agreed to sell 51% of its New Zealand
Housewares business. The sale took place on 1 July 2015. The Group is also continuing to pursue a sale of its Household Consumables business. A
sale of this business is expected to occur within the coming 12 months.
In accordance with Australian Accounting Standards, as the Directors now expect to recover the identified assets and liabilities associated with
these businesses through sale, these items have been disclosed separately as being held for sale within the Group’s 30 June 2015 consolidated
balance sheet.
The assets classified as held for sale have been measured at the lower of cost and fair value less costs to sell. An impairment charge to goodwill of
$1,240,000 was required for the New Zealand Housewares business as a result of the reclassification and remeasurement of these items.
At 30 June 2015, $37,674,000 of assets held for sale are presented within the total assets of the Australian business segment in Note 7, while
$6,231,000 are presented within the New Zealand business segment.
If the estimated consideration to be received by the Group associated with the proposed disposals were to be 10% below management’s current
estimate then an impairment charge of approximately $4,044,000 would arise (30 June 2014: $172,000).
(C) INTEREST IN JOINT VENTURE
As a result of the Group’s decision to divest 51% of its Australian, Singapore and Hong Kong Housewares business the Group holds a 49% interest in
the recently established Housewares joint venture with the Fackelmann Group. The new venture is deemed a joint venture on the basis that both
shareholders need to agree on decisions in several key areas.
2015
$’000
2014
$’000
Investment in Housewares joint venture
8,829
-
Movement during the year
Balance at 1 July
-
-
Investment in joint venture
7,607
-
Share of net profit of joint venture
1,060
-
Share of other comprehensive income of joint venture
162
-
Closing balance at 30 June
8,829
-