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| Subject: reversing the earlier indication that the costs would be written offMot settlement26/2/2001 | |
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Author: The acquisition costsbusiness purchased Motorola capitalised |
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Date Posted: 05:44:32 01/02/03 Thu In reply to: 46,360--Berlin every single one. 's message, "7) all projects (ie Sydney Sweden San fran Berlin-worldwide that relate to Mot settlement26/2/2001" on 04:47:24 01/02/03 Thu >http://www.erg.com.au/invst_relations/reports/annrept/2 >001_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 |
| Thishas been done on the basis that the recoverable amountMot settlement26/2/2001 | exceeds the acquisition costs | 05:47:34 01/02/03 Thu |
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