| Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition
over the company's interest in the net amount of the identifiable assets, liabilities and contingent
liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.
It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful
life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value,
over the useful life of that asset as follows:
Goodwill - 5% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or
residual value |