SEC Form 20-IS - iRemit Global Remittance

Office and
Communication
Equipment
- 37 -
Transportation
and Delivery
Equipment
2010
Furniture
and Fixtures
Leasehold
Improvements Total
Cost
Balance at beginning of year P=38,536,745 P=6,084,508 P=9,454,682 P=27,086,081 P=81,162,016
Additions 6,135,953 3,116,461 1,074,464 3,712,282 14,039,160
Disposals (195,500) (2,202,818) (91,412) – (2,489,730)
Exchange adjustments (923,547) 3,920 (290,382) (162,038) (1,372,047)
Balance at end of year 43,553,651 7,002,071 10,147,352 30,636,325 91,339,399
Accumulated Depreciation and
Amortization
Balance at beginning of year 27,932,474 2,422,598 5,391,722 17,595,090 53,341,884
Depreciation and amortization 5,770,034 1,330,203 1,255,968 4,188,639 12,544,844
Disposals (88,344) (708,790) (25,900) – (823,034)
Exchange adjustments (539,029) 2,679 (124,394) (76,859) (737,603)
Balance at the end of the year 33,075,135 3,046,690 6,497,396 21,706,870 64,326,091
Net Book Value at End of Year P=10,478,516 P=3,955,381 P=3,649,956 P=8,929,455 P=27,013,308
As of December 31, 2011 and 2010, the cost of fully depreciated property and equipment still in
use by the Group amounted to P=22.64 million and P=18.28 million, respectively.
Details of depreciation and amortization follow:
Consolidated
2011 2010 2009
Property and equipment - net P=11,261,295 P=12,544,844 P=12,554,531
Software costs - net (Note 14) 2,006,374 1,525,720 1,665,896
P=13,267,669 P=14,070,564 P=14,220,427
Depreciation and amortization amounting to P=1.76 million and P=0.80 million pertains to the
discontinued operations in Italy for the years ended December 31, 2011 and 2010, respectively
(see Note 28).
13. Goodwill
Movements in goodwill follow:
2011 2010
Balance at beginning of year P=93,092,118 P=97,582,106
Foreign exchange adjustment (436,778) (4,489,988)
Balance at end of year P=92,655,340 P=93,092,118
The Group’s goodwill relate to the excess of the acquisition cost over the ownership interest
acquired by the Parent Company in IGRL, IAPL, IRCL, LSML and WEPL, as follows:
IGRL and IAPL
On June 2, 2007, the Parent Company’s BOD approved the acquisition of 100.00% ownership
interest in both IGRL and IAPL for a consideration of P=71.20 million and P=8.55 million,
respectively. IGRL and IAPL are based in United Kingdom and Australia, respectively. These
entities, which are in the remittance business, have the same operations as the Parent Company.
Accordingly, on June 29, 2007, the Parent Company acquired 100.00% ownership interest in
*SGVMC116502*