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Note 22:  Intangible Assets and Goodwill

Note 22:  Intangible Assets and Goodwill
Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2009
$m
30 June 2008
$m

By type

 
Computer software 1,177 1,045
Net Kyoto position (refer note 27) 207
Goodwill 461 444
Other intangible assets 323 262
1,929 1,928 Total intangible assets and goodwill 2,168 1,751

By maturity

 
Expected to be sold or consumed within one year 318 287
Expected to be sold or consumed after one year 1,850 1,464
Total intangible assets and goodwill 2,168 1,751

By source

 
1,053 933 Core Crown 1,135 845
337 404 Crown entities 425 386
539 591 State-owned enterprises 607 520
Inter-segment eliminations 1
1,929 1,928 Total intangible assets and goodwill 2,168 1,751
Note 22: Intangible Assets and Goodwill (continued)
Actual
30 June 2009
$m
30 June 2008
$m

Computer Software

 

Internally-Generated Computer Software

 

Cost

 
Opening balance 1,839 1,533
Additions 287 342
Disposals (95) (70)
Other movements (97) 34
Total cost 1,934 1,839

Accumulated Amortisation

 
Opening balance 1,103 880
Eliminated on disposal (89) (64)
Impairment losses charged to operating balance (3) 11
Reversals of impairment losses charged to operating balance
Amortisation 189 178
Other movements (27) 98
Total accumulated amortisation 1,173 1,103
Carrying value of internally-generated computer software 761 736

Purchased Computer Software

 

Cost

 
Opening balance 1,067 1,046
Additions 216 176
Disposals (25) (59)
Other movements 57 (96)
Total cost 1,315 1,067

Accumulated Amortisation

 
Opening balance 758 755
Eliminated on disposal (14) (41)
Impairment losses charged to operating balance 2
Reversals of impairment losses charged to operating balance (1)
Amortisation 129 109
Other movements 25 (65)
Total accumulated amortisation 899 758
Carrying value of purchased computer software 416 309
Total computer software 1,177 1,045
Note 22: Intangible Assets and Goodwill (continued)
Actual
30 June 2009
$m
30 June 2008
$m

Net Kyoto Position/(Provision)

 
Opening net position/(provision) (562) (704)
Change in the price of carbon and foreign exchange rate (41) (226)
Change in net projected emission units 810 368
Closing net position/(provision) 207 (562)
Note 22: Intangible Assets and Goodwill (continued)
30 June 2009
Emission Units
million tonnes
(Mt)
30 June 2008
Emission Units
million tonnes
(Mt)

Net Kyoto Position

 
Kyoto target (assigned amount units) 309.6 309.6
Less AAUs allocated to emission reducing projects 6.8 7.0
Total commitment target 302.8 302.6

Projected emission units

 
Agriculture 184.0 198.5
Energy (incl. transport) and industrial processes 185.6 185.6
Waste 8.3 7.2
Solvent and other product use 0.2 0.2
Total projected emission units 378.1 391.5
Removals via forest 92.3 84.1
Deforestation emissions (7.4) (16.9)
Less net removals via forests 84.9 67.2
Net projected emission units 293.2 324.3
Surplus/(deficit) in units 9.6 (21.7)

The New Zealand Government has committed under the Kyoto Protocol to ensuring that New Zealand's average net emissions of greenhouse gases over 2008-2012 (the first commitment period of the Kyoto Protocol or CP1) is reduced to 1990 levels or to take responsibility for the difference. New Zealand can meet its commitment through emissions reductions and use of the Kyoto Protocol flexibility mechanisms such as Joint Implementation, the Clean Development Mechanism, and offsetting increased emissions against carbon removed by forests. The position will crystallise when the first Kyoto commitment period is settled up post-2012. These financial statements report on the New Zealand Government's obligations for the first commitment period, but not for future commitment periods which are currently being negotiated.

New Zealand's net Kyoto position as at 30 June 2009 of $NZ207 million (2008: $NZ(562) million) is based on the projected surplus of 9.6 million Kyoto Protocol emission units and a carbon price of €10 per unit. The carbon price in New Zealand dollars equates to $NZ21.61, using the 30 June 2009 exchange rate of €0.46280 = $NZ1 (30 June 2008: €0.48285 = $NZ1, and a carbon price of €12.50 per unit).

The carbon price has been determined by the Treasury, based on market transactions that have occurred.

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