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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 289

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as transactions with
equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of
the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between
the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in equity
attributable to owners of the Group.
(c) Disposal of subsidiaries
When the Group ceases to consolidate because of a loss of control, any retained interest in the entity is remeasured to
its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying
amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial
asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are
accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
Gains or losses on the disposal of subsidiaries include the carrying amount of goodwill relating to the subsidiaries sold.
(d) Goodwill
Goodwill represents the excess of the cost of acquisition of subsidiaries over the Group’s share of the fair value of
their identifiable net assets including contingent liabilities at the date of acquisition. Goodwill on acquisition in respect
of a subsidiary is included in the consolidated statement of financial position as intangible assets. Negative goodwill
represents the total of consideration transferred, non-controlling interest recognised and previously held interest
measured being less than where the fair value of the net assets of the subsidiary acquired in the case of a bargain
purchase, the difference is recognised directly in profit or loss.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash
generating units (“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination.
Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the
goodwill is monitored for internal management purposes.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate
a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of
value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not
subsequently reversed. See significant accounting policies Note 3(k) on impairment of non-financial assets.

(e) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
in a business combination is their fair values as at the date of acquisition. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are
amortised on a straight-line basis over the estimated economic useful lives and assessed for impairment whenever
there is an indication that the intangible asset may be impaired. If such an indication exists, an asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount. See significant accounting policies Note 3(k) on impairment of non-financial assets.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at
least at each statement of financial position date.
Intangible assets with indefinite useful lives and intangible assets under development are not amortised but tested for
impairment annually or more frequently if the events or changes in circumstances indicate that the carrying value may
be impaired either individually or at the cash-generating unit level. The useful life of an intangible asset with an indefinite
life is also reviewed annually to determine whether the useful life assessment continues to be supportable.