Page 98 - ar2012

2. Significant accounting policies (continued)
2.10 Impairment of non-fnancial assets
(a) Goodwill
Goodwill recognised separately as an intangible asset is tested for impairment annually and whenever there is
indication that the goodwill may be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cash-generating-units
(“CGU”) expected to beneft from synergies arising from the business combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds the
recoverable amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair value less cost
to sell and value-in-use.
The total impairment loss of a CGU is allocated frst to reduce the carrying amount of goodwill allocated to
the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset
in the CGU.
An impairment loss on goodwill is recognised as an expense and is not reversed in a subsequent period.
(b) Equipment
Investments in subsidiaries
Equipment and investments in subsidiaries are tested for impairment whenever there is any objective evidence or
indication that these assets may be impaired.
Notes to the fnancial statements
For the fnancial year ended 31 March 2012
96 POSITIONED FOR GROWTH