ar11-lr-final
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Notes to and forming part of the Financial Statements – continued<br />
For the 52 WEEK period ended 31 July 2011<br />
26. Computer Software<br />
Reconciliation of the carrying amounts of computer software at the beginning and end of the year are set about below:<br />
GROUP<br />
For the 52 week period ended 31 July 2011<br />
NotE<br />
Computer<br />
software<br />
work in<br />
progress<br />
total<br />
$000 $000 $000<br />
Opening carrying amount 20,733 307 21,040<br />
Additions 5 5,932 (307) 5,625<br />
Disposals (180) – (180)<br />
Amortisation 5, 9 (8,053) – (8,053)<br />
Closing carrying amount 18,432 – 18,432<br />
At 31 July 2011<br />
Cost 72,882 – 72,882<br />
Accumulated amortisation (54,450) – (54,450)<br />
Net carrying amount 18,432 – 18,432<br />
For the 52 week period ended 1 August 2010<br />
Opening carrying amount 23,095 97 23,192<br />
Additions 5 5,925 210 6,135<br />
Disposals (430) – (430)<br />
Amortisation 5, 9 (7,857) – (7,857)<br />
Closing carrying amount 20,733 307 21,040<br />
At 1 August 2010<br />
Cost 67,411 307 67,718<br />
Accumulated amortisation (46,678) – (46,678)<br />
Net carrying amount 20,733 307 21,040<br />
At 2 August 2009<br />
Cost 62,700 97 62,797<br />
Accumulated amortisation (39,605) – (39,605)<br />
Net carrying amount 23,095 97 23,192<br />
The Group’s annual impairment review of computer software did not identify any assets which should be impaired (2010: Nil).<br />
The parent has no computer software.<br />
Notes to and forming part of the Financial Statements – continued<br />
For the 52 WEEK period ended 31 July 2011<br />
27. Investments<br />
Movements in the carrying amount of the Group’s investment in associates are as follows:<br />
GROUP 2011 2010<br />
$000 $000<br />
Opening balance 5,921 7,376<br />
Share of associates profit before taxation 5,124 4,033<br />
Less taxation (1,549) (1,225)<br />
Equity earnings of associate 3,575 2,808<br />
Distributions received (1,911) (4,263)<br />
Closing balance 7,585 5,921<br />
(a) Investment details<br />
The Group has a 49% interest, and Westpac a 51% interest in The Warehouse Financial Services Limited. The Warehouse Financial<br />
Services Limited offers consumer credit and risk related products that include credit cards and insurance cover. The products and<br />
services are sold through The Warehouse stores as well as by direct mail and over the telephone.<br />
The balance date of The Warehouse Financial Services Limited is 30 September. The share of associate earnings is based on both<br />
audited financial statements for the year ended 30 September 2010 and unaudited management accounts for the ten month period<br />
ended 31 July 2011.<br />
(b) Summarised financial information<br />
Details of the summarised financial information relating to the Group’s associate is set out below.<br />
2011 2010<br />
$000 $000<br />
Extract from the associates balance sheet<br />
Loans 70,631 71,345<br />
Other assets 20,396 17,668<br />
91,027 89,013<br />
Liabilities (75,548) (76,930)<br />
Net assets 15,479 12,083<br />
Share of associates net assets 7,585 5,921<br />
Extract from associates income statement<br />
Operating income 15,591 16,122<br />
Net profit after tax 7,295 5,730<br />
The parent has an investment in subsidiaries at cost of $42.000 million (2010: $42.000 million). The value of the parent’s<br />
investment represents a 100% (2010: 100%) shareholding in The Warehouse Limited.<br />
A list of Group companies are detailed in note 39.<br />
FINANCIAL STATEMENTS 64<br />
FINANCIAL STATEMENTS 65