stated with the amount of sales tax included.
• The net amount of sales tax recoverable from, or
payable to, the taxation authority is included as part of
receivables or payables in the balance sheet.
Business combinations and Goodwill
Business combinations are accounted for using the
purchase method.
Goodwill is initially measured at cost being the excess of
the cost of the business combination over the
Company’s share in the net fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Company’s cash generating units that are
expected to benefit from the synergies of the
combination, irrespective of whether other assets or
liabilities of the acquiree are assigned to those units.
The company assesses whether there are any indicators
that goodwill is impaired at each reporting date. Goodwill
is tested for impairment, annually and when circumstances
indicate that the carrying value may be impaired.
Impairment is determined for goodwill by assessing the
recoverable amount of the cash-generating units, to
which the goodwill relates. Where the recoverable
amount of the cash-generated units is less than their
carrying amount an impairment loss is recognized.
Impairment losses relating to goodwill cannot be
reversed in future periods.