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Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024163STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS3.SIGNIFICANT ACCOUNTING JUDGEMENT AND ESTIMATES (continued)Judgement (continued)Consolidation of structured entitiesManagement makes significant judgement on whether to control and consolidate structured entities. The decision outcome impacts accounting methodologies in use and the financial and operational results of the Group.When assessing control, the Group considers: (1) the level of control of the investor over the investee; (2) variable returns gained through participation of relevant activities of the investee; and (3) the amount of return gained from using its power over the investee.When assessing the level of control over the structured entities, the Group considers the following four aspects:%u2022%u0009 thedegreeofparticipationwhenestablishingthestructuredentities;%u2022%u0009 contractualarrangements;%u2022%u0009 activitiesthattakeplaceonlyatspecialoccasionsoroccurringevents;and%u2022%u0009 commitmentsmadetotheinvesteefromtheGroup.When assessing whether there is control over the structured entities, the Group also considers whether the decisions it makes are as a principal or as an agent. Aspects of considerations normally include the decisionmaking scope over the structured entities, substantive rights of third parties, reward of the Group, and the risk of undertaking variable returns from owning other benefits of the structured entities.Estimation uncertaintyThe key assumptions concerning the future and other key sources of estimation uncertainty at 31 December 2024, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.Impairment of goodwillThe Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating units and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of goodwill at 31 December 2024 was US$3,350,314,000 (2023: US$3,469,442,000). Further details are given in note 19.