ESR AR 2019 EN

Notes to the Consolidated Financial Statements 31 December 2019 188 Focused 20. GOODWILL USD’000 At 1 January 2018 Cost 226,232 Accumulated impairment – Net carrying amount 226,232 Cost at 1 January 2018, net of accumulated impairment 226,232 Acquisition of subsidiaries 59,150 At 31 December 2018 285,382 At 31 December 2018 Cost 285,382 Accumulated impairment – Net carrying amount 285,382 Cost at 1 January 2019, net of accumulated impairment 285,382 Acquisition of subsidiaries (note 34) 54,861 At 31 December 2019 340,243 At 31 December 2019 Cost 340,243 Accumulated impairment – Net carrying amount 340,243 Impairment testing of goodwill As of 31 December 2018, goodwill acquired through business combinations is allocated to Redwood asset management business cash-generating unit, Infinitysub asset management business cash-generating unit, CIP business cash-generating unit and VITM business cash-generating unit for impairment testing. In 2019, the Group completed the consolidation of Infinitysub (manager of ESR-REIT) asset management business and VITM asset management business pursuant to the merger of ESR-REIT and VIT (“VIT Merger”) in October 2018. Consequently, as of 31 December 2019, the original Infinitysub asset management business cash-generating unit and VITM business cash-generating unit have been consolidated as a single cash-generating unit namely Infinitysub asset management business. Following to acquisition of PLG Group as subsidiary of the Group in March 2019, CIP business and PLG Group are now sharing the same management and consolidated as a single cash-generating unit namely ESR Australia asset management business. The cash flow projections is derived based on financial budgets after taking into account the consolidated cash-generating unit. As of 31 December 2019, the Group’s goodwill impairment testing is allocated to Redwood asset management business cash-generating unit, Infinitysub asset management business cash-generating unit, ESR Australia asset management business cash-generating unit and SIP asset management business.