|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ICI 6-K filed Mar 21, 2007. Goodwill The Group has capitalised goodwill under US GAAP of £2.7bn at 31 December 2006. Goodwill is required to be tested for impairment at least annually or more frequently if changes in circumstances or the occurrence of events indicated potential impairment exists. The Company uses the present value of future cash flows to determine implied fair value. In calculating the implied fair value, significant management judgment is required in forecasting cash flows of the reporting unit, in estimating terminal growth values and in selecting an appropriate discount rate. If alternative management judgments were adopted then different impairment outcomes could result. No impairment resulted from the annual impairment test in 2006. The headroom in the annual impairment test under US GAAP for the Paints North America reporting unit was £290m (total US GAAP goodwill of £145m at 31 December 2006); a 1% increase in the discount rate applied would have resulted in a £60m reduction in the headroom.
Back to Contents
This excerpt taken from the ICI 20-F filed Mar 31, 2006. d) Goodwill UK GAAP required goodwill to be amortised over its expected useful economic life. Under IFRS, goodwill is no longer amortised but frozen at the UK GAAP carrying value on transition and tested annually for impairment. Negative goodwill cannot be recognised as an asset on the balance sheet and should be recognised in the income statement as it arises. Any negative goodwill held on the balance sheet at the transition date was released to reserves.
Notes relating to the Group accounts 35 Comparative data restated in accordance with the transition to IFRS (continued) This excerpt taken from the ICI 6-K filed Mar 14, 2006. d) Goodwill UK GAAP required goodwill to be amortised over its expected useful economic life. Under IFRS, goodwill is no longer amortised but frozen at the UK GAAP carrying value on transition and tested annually for impairment. Negative goodwill cannot be recognised as an asset on the balance sheet and should be recognised in the income statement as it arises. Any negative goodwill held on the balance sheet at the transition date was released to reserves.
Notes relating to the Group accounts 35 Comparative data restated in accordance with the transition to IFRS (continued) This excerpt taken from the ICI 20-F filed Apr 1, 2005. Goodwill On the acquisition of a business, fair values are attributed to the net assets acquired. Goodwill arises where the fair value of the consideration given for a business exceeds the fair value of such net assets. For purchased goodwill arising on acquisitions after 31 December 1997 goodwill is capitalised and amortised through the profit and loss account over a period of 20 years unless the Directors consider it has a materially different useful life, either on acquisition or subsequently, if a shorter life is indicated. For goodwill arising on acquisitions prior to 31 December 1997 purchased goodwill was charged directly to reserves in the year of acquisition. On subsequent disposal or termination of a previously acquired business, the profit or loss recognised on disposal or termination is calculated after charging the amount of any related goodwill previously taken to reserves. Impairment reviews are performed where there is an indication of potential impairment. If the carrying value of goodwill exceeds its estimated recoverable amount, any impairment is charged to the profit and loss account. The estimated recoverable amount of goodwill is determined based on discounted projected future operating cash flows.
This excerpt taken from the ICI 6-K filed Mar 16, 2005. Goodwill On the acquisition of a business, fair values are attributed to the net assets acquired. Goodwill arises where the fair value of the consideration given for a business exceeds the fair value of such net assets. For purchased goodwill arising on acquisitions after 31 December 1997 goodwill is capitalised and amortised through the profit and loss account over a period of 20 years unless the Directors consider it has a materially different useful life, either on acquisition or subsequently, if a shorter life is indicated. For goodwill arising on acquisitions prior to 31 December 1997 purchased goodwill was charged directly to reserves in the year of acquisition. On subsequent disposal or termination of a previously acquired business, the profit or loss recognised on disposal or termination is calculated after charging the amount of any related goodwill previously taken to reserves. Impairment reviews are performed where there is an indication of potential impairment. If the carrying value of goodwill exceeds its estimated recoverable amount, any impairment is charged to the profit and loss account. The estimated recoverable amount of goodwill is determined based on discounted projected future operating cash flows.
| EXCERPTS ON THIS PAGE:
|
| |||||||
