Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Intangible Assets (Tables)

v3.20.2
Intangible Assets (Tables)
6 Months Ended
Jul. 31, 2020
Disclosure of detailed information about intangible assets [abstract]  
Disclosure of Detailed Information About Intangible Assets
   

31 July 2020

NZ $000’s

    31 January 2020
NZ $000’s
 
Goodwill            
Cost     5,901       6,091  
Accumulated impairment     (5,901 )     (6,091 )
      -       -  
Patents and licences                
Cost     24,393       25,151  
Accumulated amortisation and impairment     (3,623 )     (3,489 )
      20,770       21,662  
Brands                
Cost     12,303       12,032  
Accumulated amortisation and impairment     (6,759 )     (5,401 )
      5,544       6,631  
Software & Website                
Cost     15,625       15,548  
Accumulated amortisation and impairment     (15,542 )     (15,548 )
      83       -  
                 
Total intangible assets     26,397       28,293  
Disclosure of Detailed Information About Movements in Carrying Amounts of Intangible Assets

(a) Movements in carrying amounts of intangible assets

 

   

 

Goodwill NZ $000’s

   

Patents and licences

NZ $000’s

   

 

Brands

NZ $000’s

   

Software & Website

NZ $000’s

   

 

Total

NZ $000’s

 
For the 6 months ended 31 July 2020                              
Balance at the beginning of the period        -       21,662       6,631       -       28,293  
Additions     -       -       -       86       86  
Amortisation expense     -       (228 )     -       -       (228 )
Impairment     -       -       (1,253 )     -       (1,253 )
Foreign exchange movements     -       (664 )     166       (3 )     (501 )
Closing value at 31 July 2020     -       20,770       5,544       83       26,397  

 

   

 

Goodwill NZ $000’s

   

Patents and licences

NZ $000’s

   

 

Brands

NZ $000’s

   

Software & Website

NZ $000’s

   

 

Total

NZ $000’s

 
For the 6 months ended 31 January 2020                              
Balance at the beginning of the period        -       24,202       8,229       -       32,431  
Adjustments*     -       (2,310 )     -          -       (2,310 )
Amortisation expense     -       (589 )     -       -       (589 )
Impairment     -       -       (1,564 )     -       (1,564 )
Foreign exchange movements     -       359       (34 )     -       325  
Closing value at 31 January 2020     -       21,662       6,631       -       28,293  

 

* During the second half of last year, a financial liability relating to a shareholder loan on the balance sheet of Frederick’s of Hollywood (FOH) on the acquisition of FOH Online Corp Inc. was de-recognised as the stock purchase agreement stipulated the transaction was debt free. This has resulted in a reduction to the carrying value of the acquired intangible asset with a write back to the profit and loss account for the accrued and capitalised interest which was NZ$0.2m.

Disclosure of Information for Cash-generating Units

For the purpose of impairment testing, goodwill is allocated to cash-generating units as below:

 

Description of cash-generating unit (CGU)

 

   

6 months to

31 July 2020

NZ $000’s

   

6 months to

31 July 2019

NZ $000’s

 
             
United States         -       2,480  
Impairment of goodwill     -       2,480  
Disclosure of Impairment of Intangible Assets
   

6 months to

31 July 2020

NZ $000’s

   

6 months to

31 July 2019

NZ $000’s

 
             
FOH licence          -       1,914  
Naked patents & licence     -       123  
Impairment of patents & licences     -       2,037  

 

   

6 months to

31 July 2020

NZ $000’s

   

6 months to

31 July 2019

NZ $000’s

 
             
Pleasure State     1,253       -  
Naked     -       2,130  
Impairment for indefinite-lived brand intangibles     1,253       2,130  

 

   

6 months to

31 July 2020

NZ $000’s

   

6 months to

31 July 2019

NZ $000’s

 
             
Software         -       202  
Impairment of software     -       202  
Disclosure of Detailed Information About Impairment of Indefinite-lived Brand Intangibles

The table below illustrates the impact on the carrying value following changes in the following assumptions:-

 

    NZ $000’s  
- 33 basis points increase in discount rate     (164 )
- 70 basis points decrease in long-term sales growth     (66 )
- 500 basis points decrease in long-term sales forecast     (318 )