Notes to the Consolidated Financial Statements

for the year ended 31 March 2009

15. Investment in Joint Ventures and Associates

11. Property, Plant and Equipment

	Freehold Premises €’000	Leasehold Improv- ements €’000	Assets in Devel- opment €’000	Assets in Const- ruction €’000	Operating Landfill Assets €’000	Operating Windfarm Plant & Equipment €’000	Other Plant & Equipment €’000	Fixtures & Fittings €’000	Transport Assets €’000	Total €’000

Cost
Balance at 1 April 2007	56,722	5,122	162,060	345,362	123,769	333,301	157,449	4,791	9,286	1,197,862

Acquisitions through business combinations	12,767	1,346	14,069	27,065	-	-	26,402	635	18,924	101,208
Other acquisitions	5,630	465	123,189	480,578	8,607	12,571	32,647	1,278	2,825	667,790
Transfers	10,660	(76)	(30,105)	(150,613)	-	134,870	35,304	7	(47)	-
Transfer to intangible assets	(250)	-	-	-	-	-	-	-	-	(250)
Transfer to non-current assets held for sale	-	(1,230)	(3,210)	-	-	-	(43,335)	(3,251)	(4)	(51,030)
Disposal of Airtricity Holdings Limited	-	-	(83,798)	(219,848)	-	(360,372)	(25,221)	-	-	(689,239)
Other disposals	-	(20)	(153,974)	(427,169)	-	(106,646)	(2,604)	(180)	(2,492)	(693,085)
Effect of movements in foreign exchange	(398)	(116)	(13,448)	(44,852)	-	(13,724)	(1,867)	(60)	(1,122)	(75,587)

Balance at 1 April 2008	85,131	5,491	14,783	10,523	132,376	-	178,775	3,220	27,370	457,669

Acquisitions through business combinations	6,095	136	19,615	145,498	-	-	3,673	56	1,123	176,196
Adjustments to fair value of prior year acquisitions	-	-	-	-	-	-	(1,046)	-	(17)	(1,063)
Other acquisitions	872	1,025	37,382	74,664	20,913	-	18,370	649	7,664	161,539
Transfers	5,756	1,800	(7,671)	(125,181)	(3,991)	-	125,957	1,038	2,292	-
Transfer to intangible assets	-	-	(70)	-	-	-	(49)	(27)	-	(146)
Transfer to trade and other receivables	-	-	-	-	(3,809)	-	-	-	-	(3,809)
Transfer from provisions	-	-	-	-	1,274	-	-	-	-	1,274
Arising on merger of VBV LLC with GPRE Inc	(2,873)	(2,912)	-	(109,928)	-	-	(106,751)	-	-	(222,464)
Disposal of subsidiaries	-	-	-	(799)	-	-	(6,144)	-	-	(6,943)
Other disposals	(8,346)	-	(299)	(44)	-	-	(50,229)	(963)	(1,413)	(61,294)
Effect of movements in foreign exchange	1,769	9	6,343	15,551	-	-	12,870	(4)	(2,995)	33,543

Balance at 31 March 2009	88,404	5,549	70,083	10,284	146,763	-	175,426	3,969	34,024	534,502

	Freehold Premises €’000	Leasehold Improv- ements €’000	Assets in Devel- opment €’000	Assets in Const- ruction €’000	Operating Landfill Assets €’000	Operating Windfarm Plant & Equipment €’000	Other Plant & Equipment €’000	Fixtures & Fittings €’000	Transport Assets €’000	Total €’000

Depreciation and impairment losses
Balance at 1 April 2007	2,418	1,346	3,262	-	49,929	37,634	54,953	2,748	6,483	158,773

Depreciation charge for the year	1,288	893	387	-	12,453	20,870	31,054	1,371	2,644	70,960
Impairment losses/reversals	7,818	-	4,502	-	-	-	51,929	-	-	64,249
Transfers	2	(2)	-	-	-	-	(28)	-	28	-
Transfer to non-current assets held for sale	-	(242)	-	-	-	-	(23,102)	(2,315)	-	(25,659)
Disposal of Airtricity Holdings Limited	-	-	(4,204)	-	-	(56,038)	(9,688)	-	-	(69,930)
Disposals	(1)	(20)	-	-	-	(925)	(987)	(143)	(2,144)	(4,220)
Effect of movements in foreign exchange	(12)	(14)	-	-	-	(1,541)	(390)	(13)	(162)	(2,132)

Balance at 1 April 2008	11,513	1,961	3,947	-	62,382	-	103,741	1,648	6,849	192,041

Depreciation charge for the year	1,123	470	337	-	11,099	-	17,597	631	6,011	37,268
Impairment losses	-	-	500	-	-	-	-	-	-	500
Transfers	1	(829)	-	-	1,416	-	(1,401)	736	77	-
Transfer to intangibles	-	-	-	-	-	-	(36)	(10)	-	(46)
Arising on merger of VBV LLC with GPRE Inc	-	(5)	-	-	-	-	(414)	-	-	(419)
Disposal of subsidiaries	-	-	-	-	-	-	(2,216)	-	-	(2,216)
Other disposals	(8,346)	-	(299)	-	-	-	(49,874)	(821)	(1,089)	(60,429)
Effect of movements in foreign exchange	48	(64)	-	-	-	-	(68)	47	(617)	(654)

Balance at 31 March 2009	4,339	1,533	4,485	-	74,897	-	67,329	2,231	11,231	166,045

Carrying amounts

At 1 April 2008	73,618	3,530	10,836	10,523	69,994	-	75,034	1,572	20,521	265,628

At 31 March 2009	84,065	4,016	65,598	10,284	71,866	-	108,097	1,738	22,793	368,457

Included in the net book value of Other Plant and Equipment of the Group at 31 March 2009 is €17,762,000 (2008: €17,086,000) in respect of assets held under finance leases. Depreciation on those assets during the year amounted to €2,535,000 (2008: €2,205,000).

Included in the net book value of Transport Assets of the Group at 31 March 2009 is €17,682,000 (2008: €20,886,000) in respect of assets held under finance leases. Depreciation on those assets during the year amounted to €4,490,000 (2008: €1,602,000).

The aggregate amount of interest capitalised and included in Property, Plant and Equipment is €3,987,000 (2008: €4,662,000), including €2,933,000 (2008: €22,387,000) capitalised during the period. The interest rate in respect of interest capitalised during the period ranged from 5.03% to 6.6%.

The directors do not consider the remaining useful lives of property, plant and equipment to be materially different from the period over which the assets are being depreciated.

Directive 2002/96/EC of the European Parliament and of the Council of 27 January 2003 on Waste Electrical and Electronic Equipment was introduced on 13 August 2005. The Group has adopted a comprehensive policy on collection, treatment, recovery, reuse and recycling of waste and does not believe that the introduction of this directive will have a material effect on the carrying cost of property, plant and equipment purchased prior to 13 August 2005. The cost of collection, treatment, recovery and recycling of property, plant and equipment purchased subsequent to 13 August 2005 is financed through the payment of charges on acquisition. These charges are capitalised as part of the cost of the related asset and depreciated over the assets’ expected useful life.

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12. Goodwill

	31 March 2009 €’000	31 March 2008 €’000

At start of year	239,596	129,768
Arising on new acquisitions (note 31)	52,955	146,160
Arising on increased investment in existing subsidiaries *	2,312	-
Arising on adjustments to fair values of prior year acquisitions **	4,039	-
Other additions ***	331	2,263
Transfer to intangible assets	-	(28,402)
Transfer to other financial assets	(624)	-
Impairment	(232)	(875)
Disposal of Airtricity Holdings Limited	-	(5,432)
Other disposals	(4,230)	(257)
Translation adjustment	9,003	(3,629)

At end of year	303,150	239,596

*	Goodwill arising on increased investment in existing subsidiaries relates to the Group’s acquisition of the remaining 35% of Recycle Management Corporation LLC during the year.
**	Goodwill arising on adjustments to fair values of prior year acquisitions relates primarily to acquisitions by Greenstar UK.
***	Other additions relate to professional fees and other acquisition related costs incurred during the year.

The net book value of goodwill capitalised under previous GAAP (Irish GAAP) as at the transition date to IFRS (1 January 2004) has been treated as deemed cost. Goodwill arising on acquisition since that date has been capitalised at cost.

The following cash generating units, being the lowest level of asset for which there are separately identifiable cash flows, have the following carrying amounts of goodwill:

	Number of Cash Generating Units	31 March 2009 €’000	Number of Cash Generating Units	31 March 2008 €’000

Waste management	9	262.3	9	239.6
Wind energy	1	37.7	-	-
Solar energy	1	3.2	-	-

	11	303.2	9	239.6

Impairment testing for cash generating units containing goodwill and indefinite life intangible assets
In accordance with accounting requirements, the Group performs annual testing for impairment of its cash generating units. The most recent tests were performed at 31 March 2009. An impairment loss is recognised for the amount, if any, by which an asset’s carrying amount exceeds its recoverable amount. The recoverable amount is based on the discounted present value of the future cash flows expected to arise from the cash generating unit or asset to which the goodwill relates.

Goodwill acquired through business combinations has been allocated to cash-generating units (CGUs) for the purpose of impairment testing. The CGUs represent the lowest level within the Group at which the associated goodwill is monitored for management purposes and are not larger than the primary segments as determined in accordance with IAS 14 Segment Reporting.

Impairment testing has been carried out in respect of all assets in all 11 CGUs including goodwill.

Key assumptions factored into the cash flow forecasts include management’s estimates of future profitability, replacement capital expenditure requirements, trade working capital investment requirements and tax considerations. Forecasts are based on historical performance, where appropriate, together with management’s expectation of future trends affecting the industry sectors and other developments and initiatives in the industry. The duration of the discounted cash flow models and the discount rates applied to the cash flows are significant factors in determining the fair value of the cash-generating units and have been arrived at taking account of the Group’s strong financial position, its established history of earnings and cash flow generation across the business sectors in which it operates and its proven ability to pursue and integrate value-enhancing acquisitions. Sensitivity analysis is carried out on all budgets, forecasts and strategic plans used in the calculations.

If different estimates of the projected cash flows, lower long term growth rates or higher discount rates were used, these changes could materially alter the discounted present value of future cash flows. No account has been taken of property revaluations. As a consequence, the carrying value of goodwill could be materially different from the amount stated in the balance sheet.

The impairment testing carried out on the remaining goodwill in the balance sheet at 31 March 2009 identified significant headroom in the recoverable amount of the related CGUs as compared to their carrying value, with the exception of €232,000 of impairment losses which were recognised by the Group in the year ended 31 March 2009 (2008: €875,000).

Waste Management
Within the waste management division, goodwill has been allocated to nine cash-generating units for the purposes of impairment testing based on the division into which the business combination will be assimilated. The cash-generating units represent the lowest level at which the associated goodwill is monitored for internal management purposes.

The recoverable amount of the identified cash-generating units was estimated based on value in use calculations. These calculations use cash flow projections based on actual operating results and financial budgets approved by management covering a five year period. A terminal value has been included based on normalised year five cash flows, a growth rate in perpetuity of 2.5% and a pre-tax weighted average cost of capital of 9.6%, which are based on experience and are consistent with management’s expectations for market development and growth in market share where applicable.

Based on the review as described above, no impairment has arisen.

Wind Energy

The recoverable amount of the Group’s wind energy division was estimated based on value in use calculations. These calculations use cash flow projections based on financial budgets, forecasts and strategic plans approved by management covering a five year period. Cash flow growth for the extrapolated period (following the initial five year period) is projected to be 1.5% per annum, which is consistent with management’s expectations for income growth. Cash flows for specific projects where a Power Purchase Agreement is in place were based upon these agreements. A pre-tax discount rate of 13.3% has been used in discounting the projected cash flows. This discount rate is in line with that division’s estimated pre-tax weighted average cost of capital as at the date of impairment testing.

Based on the review as described above, no material impairment has arisen.

Solar Energy

The recoverable amount of the Group’s solar energy division was estimated based on value in use calculations. These calculations use cash flow projections based on financial budgets, forecasts and strategic plans approved by management. Cash flow for the twenty year period was based on the 20 year Power Purchase Agreement. A pre-tax discount rate of 10% has been used in discounting the projected cash flows. This discount rate is in line with that division’s estimated pre-tax weighted average cost of capital as at the date of impairment testing.

Based on the review as described above, no impairment has arisen.

Impairment Charge
An impairment charge of €232,000 arose in the Group’s tolling and other division in the year ended 31 March 2009. This impairment results from the write-off of costs associated with discontinued development projects.

The carrying amount of that CGU has been reduced to its recoverable amount based on value-in-use calculations, as outlined above. The related impairment charge has been reflected in administrative expenses in the Group Income Statement.

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13. Intangible Assets

	West-Link €’000	Software Costs €’000	Customer Lists €’000	Supplier Lists €’000	Devel- opment Assets €’000	Gas Reserves €’000	Contract Based €’000	Intell- ectual Property €’000	Total €’000

Cost
Balance at 1 April 2007	(54,461)	2,174	13,191	-	5,132	-	706	-	75,664

Additions
- through business combinations	-	949	61,009	195	-	-	3,478	-	65,631
- other	-	2,388	-	-	2,995	-	629	-	6,012
Disposals	(54,461)	-	-	-	-	-	-	-	(54,461)
Transfer from property, plant and equipment	-	250	-	-	-	-	-	-	250
Transfer from goodwill	-	-	(1,767)	-	-	30,169	-	-	28,402
Transfer to assets held for sale	-	(17)	-	-	-	-	-	-	(17)
Transfers	-	11	(953)	942	-	-	-	-	-
Translation difference	-	-	(1,178)	-	-	-	(36)	-	(1,214)

Balance at 1 April 2008	-	5,755	70,302	1,137	8,127	30,169	4,777	-	120,267

Additions
- through business combinations	-	-	9,203	-	-	-	9,899	136,368	155,470
- amendments to fair value of prior year acquisitions	-	-	2,038	-	(585)	-	186	-	1,639
- other	-	2,771	-	-	265	-	-	-	3,036
Disposals	-	-	(182)	-	(6,581)	-	-	-	(6,763)
Transfer from property, plant and equipment	-	146	-	-	-	-	-	-	146
Arising on merger of VBV LLC with GPRE Inc	-	-	-	-	(1,043)	-	-	-	(1,043)
Transfers	-	(41)	41	-	-	-	-	-	-
Translation difference	-	16	3,737	(165)	72	-	2,295	22,544	28,499

Balance at 31 March 2009	-	8,647	85,139	972	255	30,169	17,157	158,912	301,251

Amortisation and impairment losses
Balance at 1 April 2007	23,900	726	1,890	-	1,209	-	113	-	27,838

Amortisation for the year	3,776	1,248	5,331	198	54	3,000	492	-	14,099
Impairment charge	-	-	-	-	5,318	-	-	-	5,318
Transfers	-	-	(163)	163	-	-	-	-	-
Disposals	(27,676)	-	-	-	-	-	-	-	(27,676)
Translation difference	-	(43)	(464)	(20)	-	-	(25)	-	(552)

Balance at 1 April 2008	-	1,931	6,594	341	6,581	3,000	580	-	19,027

Amortisation for the year	-	1,306	13,007	185	-	3,500	1,662	-	19,660
Impairment charge	-	-	-	-	226	-	-	-	226
Transfers	-	-	26	(26)	-	-	-	-	-
Transfer from property, plant and equipment	-	46	-	-	-	-	-	-	46
Disposals	-	-	(182)	-	(6,581)	-	-	-	(6,763)
Translation difference	-	(94)	(89)	(78)	16	-	126	-	(119)

Balance 31 March 2009	-	3,189	19,356	422	242	6,500	2,368	-	32,077

Carrying Amounts
At 1 April 2008	-	3,824	63,708	796	1,546	27,169	4,197	-	101,240

At 31 March 2009	-	5,458	65,783	550	13	23,669	14,789	158,912	269,174

The amortisation charge for the period has been charged to operating expenses in the income statement.

•	Up until the date of its disposal, West-Link was amortised over the life of the concession.
•	Software costs are amortised over their useful lives of five years.
•	Customer lists are amortised over their estimated useful lives of five to ten years.
•	Supplier lists are amortised over their estimated useful lives of six years.
•	Gas reserves are amortised in line with the rate of utilisation of the gas reserve.
•	Contract based intangible assets are amortised over their useful lives of three to ten years.
•	Intellectual property is amortised when development activities are substantially completed and the relevant assets commence operations.

Impairment Charge
An impairment charge of €226,000 arose in the Group’s waste management division in the year ended 31 March 2009. This impairment results from the write-off of development costs associated with discontinued acquisition projects.

The prior year impairment charge of €5,318,000 arose due to the cessation of Bioverda’s European activities.

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14. Investment Properties

	31 March 2009 €’000	31 March 2008 €’000

At start of year	-	-
Transfer from assets held for resale	3,405	-
Impairment charge	(603)	-

At end of year	2,802	-

Investment properties comprises of land and a building located in Ireland, held for capital appreciation. During the year, the Group transferred a property with a carrying value of €3.405 million from Assets Held for Sale to Investment Properties. The property was classified as held for sale at 31 March 2008 as the Group had planned on selling the property during the year ended 31 March 2009. However, the Group has now decided to hold the property for capital appreciation and the property was reclassified to Investment Properties.

The carrying amount of investment properties is the fair value of the property as determined by the Directors. In preparing the property valuation, the Directors consulted with a registered independent appraiser having an appropriate recognised professional qualification and recent experience in the location and category being valued. The Directors are of the opinion that the fair value which they have applied in their valuation is the amount at which the property should exchange between a willing buyer and seller in an arms’ length transaction which is consistent with market values as defined, inter alia, by the Royal Institute of Chartered Surveyors. Attention is drawn to the risks associated with the valuation of investment properties, particularly at the current time. Notwithstanding the increased level of uncertainty in property markets generally at present, the Directors are satisfied with the basis upon which the valuation has been prepared.

The impairment loss recognised of €603,000 has been reflected in the income statement. A deferred tax asset of €151,000 was recognised during the year on the investment property.

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15. Investment in Joint Ventures and Associates

	Joint Ventures €’000	Associates €’000

Balance at 1 April 2007	68,258	-

Acquisitions	268	-
Additional investment	4,606	-
Joint venture arising upon disposal of 50% of subsidiary	54,726	-
Dividends paid	(2,242)	-
Loss for the year	(2,100)	-
Effects of movement in hedging reserve	(3,066)	-
Effects of movement in foreign exchange reserve	(4,291)	-
Impairment	(4,531)	-
Disposal of Airtricity Holdings Limited	(66,542)	-

Balance at 1 April 2008	45,086	-

Acquisitions	192	1,056
Additional investment	(205)	38,415
Dividends paid	(832)	-
Profit/(loss) for the year	2,118	(4,131)
Effects of movements in hedging reserve	(16,071)	-
Provision for joint venture liabilities	17,684	-
Arising on increase in investment in VBV LLC	(32,427)	-
Assets contributed by the Group on merger of VBV LLC with GPRE Inc	-	59,616*
Repayment of shareholder loan	(2,357)	-

Balance at 31 March 2009	13,188	94,956

Joint venture loss for the prior year includes a loss of €2,680,000 included in discontinued items.

Corn-Based Ethanol
On 2 April 2008, the Group acquired the shareholding of the Virgin Group in Virgin Bioverda LLC (“VBV”) increasing the Group’s overall investment in VBV from 47.5% to 90%. On 15 October 2008, VBV was merged with Green Plains Renewable Energy,
Inc. (“GPRE”). This was accounted for as a reverse acquisition i.e. VBV was considered the acquiring company and GPRE was considered the acquired company. As a result, GPRE assets and liabilities as of 15 October 2008, the date of the merger, have been incorporated into VBV’s balance sheet based on the fair values of the net assets acquired, which equalled the consideration paid for the acquisition. This transaction resulted in the Group holding a 45% interest in the merged GPRE entity.

* The consolidated asset and liabilities of VBV LLC, contributed by the Group, at the date of merger, were as follows:

	€’000

Property, plant & equipment	222,045
Intangible assets	1,043
Financial assets	2,343
Inventories	11,217
Trade and other receivables	18,755
Interest bearing loans and borrowings	(132,833)
Provisions	(1,600)
Trade and other payables	(21,660)
Cash & cash equivalents	12
Net identifiable assets and liabilities	99,322
Less minority share of net assets merged	(39,001)

	60,321

Translation reserve recycled to income statement	(845)
Transaction costs capitalised	140

Group’s share of net assets merged	59,616

The Group’s share of its joint venture and associate assets and liabilities was as follows:

	Joint Ventures		Associates
	31 March 2009 €’000	31March 2008 €’000	31 March 2009 €’000	31 March 2008 €’000

Non-current assets	197,286	191,715	165,168	-
Current assets	10,694	14,435	59,778	-

Share of gross assets	207,980	206,150	224,946	-

Non-current liabilities	(202,539)	(145,883)	(106,426)	-
Current liabilities	(9,937)	(20,557)	(31,949)	-

Share of gross liabilities	(212,476)	(166,440)	(138,375)	-

Net investment in joint ventures (excluding goodwill)	(4,496)	39,710	86,571	-
Goodwill	-	5,376	8,385	-

	(4,496)	45,086	94,956	-
Provision for joint venture liabilities	17,684	-	-	-

Share of gross assets	13,188	45,086	94,956	-

Impairment Testing
The Green Plains Renewable Energy, Inc. share price at 31 March 2009 was US$3.07 per share. The share price at 16 July 2009 was US$7.92 per share.

The recoverable amount of the Group’s corn-based ethanol division was estimated based on value in use calculations. These calculations use cash flow projections based on financial budgets and forecasts. Cash flow growth for the extrapolated period of the expected useful life of an ethanol plant of 34 years is projected to be 2.7% per annum, which is consistent with management’s expectations for income growth. A pre-tax discount rate of 11.6% has been used in discounting the projected cash flows. This discount rate is in line with that division’s estimated pre-tax weighted average cost of capital as at the date of impairment testing.

Based on the review as described above, and due to the start-up nature of GPRE, the Directors are of the view that no material impairment has arisen.

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