The Treasury

Global Navigation

Personal tools

Note 22: Intangible Assets and Goodwill

Note 22: Intangible Assets and Goodwill
Forecast
30 June 2012 		Actual
Budget 11
$m 		Budget 12
$m 		30 June
2012
$m 		30 June
2011
$m

By type

 
Computer software 1,375 1,266
Net Kyoto position 202 291
Goodwill 746 485
Other intangible assets 382 352
2,714 2,430 Total intangible assets and goodwill 2,705 2,394

By maturity

 
Expected to be sold or consumed within one year 412 398
Expected to be sold or consumed after one year 2,293 1,996
Total intangible assets and goodwill 2,705 2,394

By source

 
1,498 1,160 Core Crown 1,112 1,157
500 455 Crown entities 494 430
716 815 State-owned enterprises 1,099 807
-  -  Inter-segment eliminations -  - 
2,714 2,430 Total intangible assets and goodwill 2,705 2,394
Note 22: Intangible Assets and Goodwill (continued)
Actual
30 June
2012
$m 		30 June
2011
$m

Computer Software

 

Internally-Generated Computer Software

 

Cost

 
Opening balance 2,332 2,148
Additions 345 225
Disposals (87) (121)
Other movements (32) 80
Total cost 2,558 2,332
Accumulated Amortisation  
Opening balance 1,551 1,393
Eliminated on disposal (64) (102)
Impairment losses charged to operating balance 28 4
Amortisation 244 235
Other movements (63) 21
Total accumulated amortisation 1,696 1,551
Carrying value of internally-generated computer software 862 781

Purchased Computer Software

 

Cost

 
Opening balance 1,503 1,526
Additions 196 178
Disposals (65) (202)
Other movements 11 1
Total cost 1,645 1,503

Accumulated Amortisation

 
Opening balance 1,018 1,021
Eliminated on disposal (50) (172)
Impairment losses charged to operating balance 7 (2)
Amortisation 168 163
Other movements (11) 8
Total accumulated amortisation 1,132 1,018
Carrying value of purchased computer software 513 485
Total computer software 1,375 1,266
Note 22: Intangible Assets and Goodwill (continued)
Actual
30 June
2012
$m 		30 June
2011
$m

Net Kyoto Position

 
Opening net asset/(provision) 291 212
Change in the price of carbon and foreign exchange rate (177) (123)
Change in net projected emission units 88 202
Closing net asset 202 291
Note 22: Intangible Assets and Goodwill (continued)
30 June 2012
Emission Units
Million tonnes
(Mt) 		30 June 2011
Emission Units
Million tonnes
(Mt)

Net Kyoto Position

 
Kyoto target (assigned amount units) 309.6 309.6
Less AAUs allocated to emission reducing projects 4.5 3.4
Total commitment target 305.1 306.2

Projected emission units

 
Agriculture 170.5 170.1
Energy (incl. transport) and industrial processes 184.9 183.6
Waste 10.0 9.9
Solvent and other product use 0.2 0.1
Total projected emission units 365.6 363.7
Removals via forest 92.2 89.3
Deforestation emissions (6.4) (6.6)
Less net removals via forests 85.8 82.7
Net projected emission units 279.8 281.0
Less net transfers of AAUs 2.2 3.4
Add Kyoto compliant units surrendered under ETS 12.3 - 
Surplus units 35.4 21.8

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 gross emissions 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 with carbon removed by forests. New Zealand's Kyoto Protocol compliance over the first commitment period will not be finalised until 2015 when the annual submission covering the period 1990 to 2012 is submitted and internationally reviewed. 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 2012 of $NZ202 million (2011: $NZ291 million) is based on the projected surplus of 35.4 million Kyoto Protocol emission units. This surplus includes 12.3 million Kyoto compliant units surrendered by the emitters under the Emissions Trading Scheme. The carbon price of €3.60 per unit has been used. The carbon price in New Zealand dollars equates to $NZ5.70 (2011: $NZ13.31), using the 30 June 2012 exchange rate of €0.6319 = $NZ1 (30 June 2011: €0.5734 = $NZ1, and a carbon price of €7.63 per unit).

The carbon price has been determined by the Ministry for the Environment based on a report commissioned from Point Carbon on the international market transactions that have occurred in the AAU markets.

Page top