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Refer
Note
CCA Group
$M
CCA Entity
$M

Note 13. Investments in Bottlers’ Agreements
Year ended 31 December 2007

At 1 January 2007
Impairment charge
Disposal of operation 6d)
Net foreign currency movements

At 31 December 2007

1,505.6 –
(25.0) –
(482.8) –
(69.0) –
928.8 –
Year ended 31 December 2006
At 1 January 2006 1,506.4 –
Acquisitions of entities and operations 3.2 –
Net foreign currency movements (4.0) –
At 31 December 2006 1,505.6 –
At 31 December 2006
Cost (gross carrying amount) 1,757.3 –
Prior impairment brought forward (251.7) –
Net carrying amount 1,505.6 –

The bottlers’ agreements reflect a long and ongoing relationship between the Group and The Coca-Cola Company (TCCC). At 31 December 2007, there were
five agreements throughout the Group at varying stages of their, mainly, ten year terms. These agreements are all on substantially the same terms and
conditions, with performance obligations as to production, distribution and marketing and include provisions for renewal. All of the Group’s present
bottlers’ agreements, the first of which was issued in 1939, that have expired have been renewed at expiry of their legal terms. No consideration is
payable upon renewal.

In assessing the useful life of bottlers' agreements, due consideration is given to the Group's history of dealing with TCCC, established international
practice of that company, TCCC's equity in the Group, the participation of nominees of TCCC on the Company's Board of Directors and the ongoing strength
of TCCC brands. In light of these considerations, no factor can be identified that would result in the agreements not being renewed at the end of their legal
terms, and accordingly bottlers' agreements have been assessed as having an indefinite useful life.

Bottlers' agreements acquired from a business combination are capitalised at fair value as at the date of acquisition. Following initial recognition, the cost
less impairment model is utilised for measurement.

Immediately before the classification of the South Korean business as a discontinued operation in 2007, the recoverable amount was estimated for the
business. An impairment loss of $25.0 million was recognised in the income statements in the line item discontinued operation. No major review of
business assumptions was carried out for the South Korean business. Senior management undertook a review of its value in use and determined that an
impairment of $25.0 million was required.

The South Korean business was discontinued on 24 October 2007. Refer to Note 6 for further details.

All the other bottlers’ agreements were tested for impairment and no other impairment loss was expensed for the financial year (except for the
$25.0 million impairment loss against the South Korean business described above). A description of management’s approach to ensuring each investment
in bottlers’ agreement is recognised at its recoverable amount is disclosed in Note 16.