(10a) Goodwill
All business combinations are recognised using the acquisition method. Goodwill is the amount that arises from the acquisition of subsidiaries. Goodwill represents the excess of the transaction price of the acquisition over the net fair value of the identifiable assets and liabilities at the time of acquisition. Regarding goodwill, an impairment test is systematically performed every year at the reporting date to determine whether there are any impairments.
For impairment testing purposes, goodwill acquired in business combinations is allocated, at the acquisition date, to a cash-generating unit (CGU) or group of CGUs expected to benefit from that business combination. Each unit to which goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Negative goodwill arising from an acquisition is recognised directly in the statement of profit or loss.
(10b) Other intangible assets
Intangible assets acquired by the Group that have finite useful lives are measured at cost less accumulated amortisation and accumulated impairments.
(10c) Amortisation of other intangible assets
The other intangible assets are amortised through the statement of profit or loss on a straight-line basis over the expected useful lives of the intangible assets and undergo periodic impairment testing (see accounting policy 17). The estimated useful lives of the intangible asset categories are as follows:
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Customer base: 5-20 years
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Order book: 1-4 years
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Brand name: 5-10 years
(10d) Expenses after initial recognition
Expenditure on intangible assets, other than goodwill, is only capitalised after initial recognition if it is expected to increase the future economic benefits that are inherent in the specific asset to which the expenditure relates. All other items of expenditure are recognised as costs in the statement of profit or loss when these are incurred.