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Goodwill is carried at cost less accumulated impairment losses and is now tested for impairment annually or more frequently if events or changes in circumstances indicate that it may have to be impaired. Any impairment loss is recognised in profit or loss and subsequent reversal is not allowed. Prior to 1 January 2006, goodwill on acquisition was written off and set off against reserves in the year of acquisition.
In the current year, the standard requires to recognize goodwill as an asset subject to annual impairment review. This change in policy will result in better presentation of the financial statements and is in line with goodwill accounting...
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