Note 14: Intangible Assets (including goodwill)
Goodwill and intangible assets as at 30 June 2005 total $737 million ($849 million as at 30 June 2004). Intangible assets (including goodwill) comprise:
| 30 June 2005 $m | 30 June 2004 $m | |
|---|---|---|
| Intangible assets | 279 | 302 |
| Goodwill | 458 | 547 |
| Total Intangible Assets | 737 | 849 |
Intangible assets primary relate to licences and derivatives that Meridian Energy acquired on purchasing Southern Hydro Pty Limited in 2003.
Goodwill is primarily made up of:
- remaining goodwill on acquisition of Air New Zealand of $305 million ($352 million as at 30 June 2004). It is amortised over a 10-year period. This results in an expense of $47 million per year
- goodwill on acquisitions by SOEs.
The following table reconciles the movements in goodwill during the year.
| Description ($million) | 30 June 2005 | 30 June 2004 |
|---|---|---|
| Opening balance | ||
| Gross goodwill | 709 | 694 |
| Accumulated amortisation | (162) | (84) |
| Net opening balance | 547 | 610 |
| Goodwill acquired during the period | 8 | 15 |
| Goodwill amortised during the period | (97) | (78) |
| Closing balance | 458 | 547 |
| Represented by: | ||
| Gross goodwill | 717 | 709 |
| Accumulated amortisation | (259) | (162) |
| Net closing balance | 458 | 547 |
