McPHERSON’S LIMITED

 ANNUAL REPORT 2015  



  

69

At 30 June 2015, the total carrying value of brandnames tested using the value-in-use method was $52,153,000 (2014: $49,259,000).  The value-in-

use calculations for these brandnames exceeded their carrying values. 
In the current year the fair value less costs to sell calculation relates only to the brandnames that are classified as held for sale at 30 June 2015 and is 

based on expected disposal calculations.  Based on these calculations all brandnames classified as held for sale at 30 June 2015 are considered 

recoverable.  The total carrying value of brandnames tested using this method was $20,166,000 (2014: $23,601,000).

Impact of possible changes in key assumptions

If the year one projected sales by brand were 10.0% below the current estimates used in the value-in-use calculations, for the brands tested using 

this method, an impairment charge of $557,000 (2014: $1,394,000) would arise.
If the year one contribution margin percentages were 5.0 percentage points below the current estimates used in the value-in-use calculations, for 

the brands tested using this method, no brand impairment charge would arise (2014: $8,982,000).
If the terminal year growth rates used in the value-in-use calculations were to be 1.0 percentage point lower than management’s estimates, for the 

brands tested using this method, no brand impairment would arise (2014: Nil). 

NOTE 17.   DEFERRED TAX ASSETS

2015

$’000

2014

$’000

The balance comprises temporary differences attributable to:
Cash flow hedges

868

1,423

Employee benefits

1,969

1,686

Depreciation

1,143

1,281

Inventory obsolescence

203

364

Transaction costs arising on share issues

110

179

Trade receivables impairment

110

54

Claims and returns

114

54

Warranty

546

522

Other provisions and accruals

-

419

Deferred gain

492

28

Total temporary differences

5,555

6,010

Movements

CASH FLOW 

HEDGES

EMPLOYEE 

BENEFITSDEPRECIATIONOBSOLESCENCE

TRANSACTION 

COSTS ARISING ON 

SHARE ISSUES

OTHER

TOTAL

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Opening balance at 1 July 2013

618

1,892

1,162

697

254

974

5,597

Credited/(charged) to profit or loss (Note 8)

-

30

(30)

(80)

-

(249)

(329)

Credited/(charged) to equity

805

-

-

-

66

-

871

Amortisation of transaction costs on share 
issues

-

-

-

-

(110)

-

(110)

Acquired in business combinations (Note 31)

-

39

-

-

-

332

371

Transfers 

-

(318)

-

-

-

43

(275)

(Over)/under provision in prior years

-

39

144

(255)

(31)

(25)

(128)

Foreign currency exchange differences

-

4

5

2

-

2

13

Closing balance at 30 June 2014

1,423

1,686

1,281

364

179

1,077

6,010

Credited/(charged) to profit or loss (Note 8)

682

346

(16)

(169)

-

222

1,065

Credited/(charged) to equity

(1,237)

-

-

-

2

(15)

(1,250)

Amortisation of transaction costs on share 
issues

-

-

-

-

(71)

-

(71)

Transfers 

-

(37)

-

-

-

-

(37)

(Over)/under provision in prior years

-

(21)

(122)

-

-

(7)

(150)

Foreign currency exchange differences

-

(5)

-

8

-

(15)

(12)

Closing balance at 30 June 2015

868

1,969

1,143

203

110

1,262

5,555