Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at
the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less
accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired
entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life,
which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over
their useful life as follows:
Asset class Amortisation method and rate
Goodwill straight line over 10 years