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| Subject: 7) all projects (ie Sydney Sweden San fran Berlin-worldwide that relate to Mot settlement26/2/2001 | |
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Author: 46,360--Berlin every single one. |
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Date Posted: 04:47:24 01/02/03 Thu In reply to: 's message, "So putting it all together so far S Duffy questions. 6/1/03--Stevo" on 04:05:24 01/02/03 Thu http://www.erg.com.au/invst_relations/reports/annrept/2001_financials.pdf ------------------------------------------------------------ The acquisition costs of the business purchased from Motorola have been capitalised, reversing the earlier indication that the costs would be written off. This has been done on the basis that the recoverable amount exceeds the acquisition costs and there is no justification for writing the asset down, particularly given the recent confirmation that the consolidated entity, through Integrated Transit Solutions Ltd (ITS), has been chosen as the preferred proponent for the Sydney Integrated Ticketing System (SITS) project. Matters Subsequent to the End of the Financial Year The consolidated entity announced that ITS has been selected as the preferred proponent for the New South Wales Department of Transport SITS project. ITS is the joint venture vehicle formed by the parent entity and Motorola Inc to bid for the SITS contract. The Sydney system will allow passengers to use one smart card to travel on all public transport, including railways, buses (both government-owned and private) and ferries in New South Wales. The New South Wales Government and ITS will now negotiate the final contract terms with a final contract scheduled by 31 December 2001. Under the draft contract, ITS will supply equipment and software for the Sydney system. In addition, the New South Wales Department of Transport is to outsource the operation of the Sydney system to ITS for ten years.The consolidated entity has incurred $3,189,000 of tender costs which have been capitalised to project contract costs at 30 June 2001following the announcement of ITS being selected as the preferred proponent for the SITS project. During the year, the parent entity acquired economic benefits arising from the settlement of the ERG Motorola Alliance. Both ERG Limited (ERG) and Motorola Inc agreed to restructure the nature of the alliance so that ERG assumes responsibility for the transit business. An amount of $35,127,000, representing part of the settlement payment, has been capitalised and identified as those costs which will be recovered against future project revenue streams. The amortisation of these costs will be expensed over the period of the operating contracts. Refer to note 47 for further details of amounts capitalised as part of the settlement payment. During the year, ERG Limited made a payment to Motorola Inc for settlement of the ERG Motorola Alliance. The payment of $46,360,000 is reconciled to the statement of cash flows as follows: Total consideration for payment 46,360 – 46,360 –Total consideration is made up as follows: Advances to controlled entities – – 11,233 –Payments for investment in associated entity 2,751 – – –Payments for property, plant and equipment 8,482 – – –Payment for settlement of alliance agreement 35,127 – 35,127 –46,360 – 46,360 ------------------------------------------------------------ Full system implementation is due Sweden Jan 2003.MOT46.360m 26/2/2001 MOT alliance settlement--ERG/Motorola (21.15 millU.S.)46,360 Full system implementation is due Sweden Jan 2003, recurring revenues relating to the settlement with MOT on the 26/2/2001 should begin to flow. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| reversing the earlier indication that the costs would be written offMot settlement26/2/2001 | The acquisition costsbusiness purchased Motorola capitalised | 05:44:32 01/02/03 Thu |
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