Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4, 5, 6, 7, 8, 9, 10 ] |
| Subject: Thishas been done on the basis that the recoverable amountMot settlement26/2/2001 | |
|
Author: exceeds the acquisition costs |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 05:47:34 01/02/03 Thu In reply to: The acquisition costsbusiness purchased Motorola capitalised 's message, "reversing the earlier indication that the costs would be written offMot settlement26/2/2001" on 05:44:32 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 |
| Re: and there is nojustification for writing the asset downMot settlement26/2/2001 | No name | 05:48:37 01/02/03 Thu |
|
||