BUILDING LANDMARKS, CHARTING GROWTH
223
Annual Report 2015
NOTES TO THE FINANCIAL STATEMENTS
7 INTANGIBLE ASSETS AND GOODWILL
(continued)
Impairment testing for CGUs containing goodwill
(continued)
These assumptions were used for the analysis of the management business segment. Management determined budgeted
growth rate based on past performance and its expectations of market developments. The weighted average growth rates
used were consistent with forecasts included in industry. The discount rate used was pre-tax and reflected specific risks
relating to the relevant segments. The cash flow projections included specific estimates for the years and terminal growth
rate thereafter. The terminal growth rate was determined based on management’s estimate of the long-term compound
annual EBITDA growth rate, consistent with the assumptions that a market participant would make.
Budgeted EBITDA was estimated taking into account past experience, adjusted by revenue growth. Revenue growth was
projected taking into account the average growth levels experienced over the past five years and the estimated revenue
growth for the next five years.
The estimated recoverable amount of the CGU exceeded its carrying amount. Management has identified that a
reasonably possible change in a key assumption could cause the carrying amount to exceed the recoverable amount.
The following table shows the amount by which this assumption would need to change for the estimated recoverable
amount to be equal to the carrying amount.
Change required for
carrying amount to equal
the recoverable amount
31/12/2015
30/6/2014
%
%
Discount rate
0.24
–
8 OTHER FINANCIAL ASSETS
Group
Company
31/12/2015
30/6/2014 31/12/2015
30/6/2014
$’000
$’000
$’000
$’000
Available-for-sale
Quoted equity securities
48,537
–
48,037
–
Unquoted equity securities
5,419
–
–
–
53,956
–
48,037
–
The fair value of the quoted equity securities are based on quoted bid price and unquoted equity securities are estimated
based on the net asset values of the investee entities, which takes into consideration the fair value of the underlying
investments and properties held by these entities.
Information about the Group and the Company’s exposures to market risks and fair value measurement is included in
note 26.
