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Notes to the Consolidated Financial Statements31 December 2024ESR Group Limited Annual Report 2024193STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTS19.GOODWILLUS$%u2019000At 1 January 2023Cost3,455,498Accumulated impairment%u2013Net carrying amount3,455,498Cost at 1 January 2023, net of accumulated impairment3,455,498Acquisition of subsidiaries27,075Impairment(13,571)Exchange realignment440At 31 December 20233,469,442At 31 December 2023Cost3,483,013Accumulated impairment(13,571)Net carrying amount3,469,442Cost at 1 January 2024, net of accumulated impairment3,469,442Reclassification to assets of a disposal group held for sale(118,870)Exchange realignment(258)At 31 December 20243,350,314At 31 December 2024Cost3,363,885Accumulated impairment(13,571)Net carrying amount3,350,314Impairment testing of goodwillAs of 31 December 2024, the Group%u2019s goodwill is allocated to the Redwood asset management business cashgenerating unit, Infinitysub asset management business cash-generating unit, ESR Australia asset management business cash-generating unit, SIP asset management business cash-generating unit, and ESRAM asset management business cash-generating unit for impairment testing.Redwood asset management business cash-generating unitThe recoverable amount of the Redwood assets management business cash-generating unit has been determined based on a value in use calculation using cash flow projections based on financial budgets covering a five-year period approved by senior management. The discount rate applied to the cash flow projections is 10.2%. The growth rate used to extrapolate the cash flows of the Redwood asset management business cash-generating unit beyond the five-year period is 2%. This growth rate is based on the average growth rate of the management fee in which the business operates. Management believes that this growth rate is reasonable. The Company has engaged independent professionally qualified valuers for the impairment assessment.