8 INTANGIBLE ASSETS AND GOODWILL Goodwill Management contracts Total $’000 $’000 $’000 Group Cost At 1 January 2023, 31 December 2023 and 31 December 2024 63,155 26,040 89,195 Accumulated amortisation At 1 January 2023 – 21,266 21,266 Amortisation charge for the year – 2,604 2,604 At 31 December 2023 – 23,870 23,870 Amortisation charge for the year – 2,170 2,170 At 31 December 2024 – 26,040 26,040 Carrying amounts At 1 January 2023 63,155 4,774 67,929 At 31 December 2023 63,155 2,170 65,325 At 31 December 2024 63,155 – 63,155 Amortisation The amortisation of management contracts is included in administrative expenses. Impairment testing for CGUs containing goodwill For the purposes of impairment testing, goodwill has been allocated to the Group’s CGU as follows: Group 2024 2023 $’000 $’000 Management business 63,155 63,155 The recoverable amount of this CGU was based on value in use. Value in use was determined by discounting future cash flows to be generated from the continuing use of the CGU based on the most recent forecasts approved by management for the next five years. The key assumptions used in the estimation of the recoverable amount are set out below. Group 2024 2023 % % Discount rate (post-tax) 11.7 – 13.0 11.2 – 12.3 Discount rate (pre-tax) 14.1 – 17.3 12.8 – 48.6 Terminal value growth rate 3.0 3.0 Budgeted EBITDA growth rate 3.0 3.0 The discount rate used was post-tax and reflected specific risks relating to the management business segment. 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 growth rate, consistent with the assumptions that a market participant would make. Notes to the Financial Statements Year ended 31 December 2024 196 PERENNIAL HOLDINGS PRIVATE LIMITED
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