ar11-lr-final

Notes to and forming part of the Financial Statements – continued
For the 52 WEEK period ended 31 July 2011
26. Computer Software
Reconciliation of the carrying amounts of computer software at the beginning and end of the year are set about below:
GROUP
For the 52 week period ended 31 July 2011
NotE
Computer
software
work in
progress
total
$000 $000 $000
Opening carrying amount 20,733 307 21,040
Additions 5 5,932 (307) 5,625
Disposals (180) – (180)
Amortisation 5, 9 (8,053) – (8,053)
Closing carrying amount 18,432 – 18,432
At 31 July 2011
Cost 72,882 – 72,882
Accumulated amortisation (54,450) – (54,450)
Net carrying amount 18,432 – 18,432
For the 52 week period ended 1 August 2010
Opening carrying amount 23,095 97 23,192
Additions 5 5,925 210 6,135
Disposals (430) – (430)
Amortisation 5, 9 (7,857) – (7,857)
Closing carrying amount 20,733 307 21,040
At 1 August 2010
Cost 67,411 307 67,718
Accumulated amortisation (46,678) – (46,678)
Net carrying amount 20,733 307 21,040
At 2 August 2009
Cost 62,700 97 62,797
Accumulated amortisation (39,605) – (39,605)
Net carrying amount 23,095 97 23,192
The Group’s annual impairment review of computer software did not identify any assets which should be impaired (2010: Nil).
The parent has no computer software.
Notes to and forming part of the Financial Statements – continued
For the 52 WEEK period ended 31 July 2011
27. Investments
Movements in the carrying amount of the Group’s investment in associates are as follows:
GROUP 2011 2010
$000 $000
Opening balance 5,921 7,376
Share of associates profit before taxation 5,124 4,033
Less taxation (1,549) (1,225)
Equity earnings of associate 3,575 2,808
Distributions received (1,911) (4,263)
Closing balance 7,585 5,921
(a) Investment details
The Group has a 49% interest, and Westpac a 51% interest in The Warehouse Financial Services Limited. The Warehouse Financial
Services Limited offers consumer credit and risk related products that include credit cards and insurance cover. The products and
services are sold through The Warehouse stores as well as by direct mail and over the telephone.
The balance date of The Warehouse Financial Services Limited is 30 September. The share of associate earnings is based on both
audited financial statements for the year ended 30 September 2010 and unaudited management accounts for the ten month period
ended 31 July 2011.
(b) Summarised financial information
Details of the summarised financial information relating to the Group’s associate is set out below.
2011 2010
$000 $000
Extract from the associates balance sheet
Loans 70,631 71,345
Other assets 20,396 17,668
91,027 89,013
Liabilities (75,548) (76,930)
Net assets 15,479 12,083
Share of associates net assets 7,585 5,921
Extract from associates income statement
Operating income 15,591 16,122
Net profit after tax 7,295 5,730
The parent has an investment in subsidiaries at cost of $42.000 million (2010: $42.000 million). The value of the parent’s
investment represents a 100% (2010: 100%) shareholding in The Warehouse Limited.
A list of Group companies are detailed in note 39.
FINANCIAL STATEMENTS 64
FINANCIAL STATEMENTS 65