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20 INTANGIBLE ASSETS

(a) THE GROUP

The directors have reviewed the carrying amount of the Group’s intangible assets and are of the opinion that no impairment is required at the reporting date (2019 and 2018: Nil).

(a) CUSTOMER RELATIONS

Customer relations arising on acquisition of ACML represent that income stream that both investees are expected to generate based on the good relations that were previously developed and maintained with their customers. The customer relations were fully amortised during the year ended 30 June 2019.

(b) IMPAIRMENT TESTING OF GOODWILL

Goodwill generated on acquisition of ACML was fully impaired during the year ended 30 June 2019, as a result of the fall in the financial performance of ACML. The impairment review was based on a value-in-use calculation using cash flow projections from financial budgets reviewed by senior management covering a five year period. The discount rate used was 15.6% in 2019 and 12% in 2018.

(b) THE BANK

The directors have reviewed the carrying amount of the Bank’s intangible assets and are of the opinion that no impairment is required at the reporting date (2019 and 2018: Nil).

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