Ann: Camperdown Dairy Company Clarification, page-6

It was arguably a poor use of language. You can own a "factory" in several different ways:

* As a business enterprise (PEQ, processes, knowhow, etc but not the physical land). In a professional office setting, this is often equated to the landlord owning the premises, but the practice owning the fitout. It's then a question of what happens to the fitout at the end of term (ie: transfers to LL, make good, reinstatement to pre-leased condition, etc).

* As a property owner but not operator of the factory (ie: you own the factory complex /building and land shell but not the contents within). Hence, you are in the business of leasing out the land and buildings for other purposes (ie: as a factory business enterprise, for instance).

* as a property owner cume business enterprise operator (ie: turn key function where you own both the underlying land and buildings in which the factory complex is set up, as well as the factory complex itself).

In this instance, they own the factory business enterprise /business undertaking including its associated PEQ, etc, but not any of the facilities (ie: land or buildings) in which it is housed. The entire operation therefore is very likely a "make good" outcome at end of term.

If you look back at N22b, AR16, part of the $10.93M final purchase consideration was allocated to PPEQ (property, plant and equipment) = $3.834M. If however you then look back to N12, under Land, Buildings and Improvements, you will find a net carried value of $19.5M, all of which is associated with the farm properties. Most, if not all, of the PPEQ component insofar as it related to CDC was therefore captured as part of plant & equipment (owned, to which N12 Movements in Carrying Accounts, refers).