AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

13 INTANGIBLE ASSETS AND GOODWILL (CONTINUED)

Goodwill (continued) Where goodwill forms part of a cash-generating unit and part of the operation of that unit is disposed, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Impairment losses recognised for goodwill are not subsequently reversed. Intangible assets - Insurance Broking Register and Brand Name Identifiable intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment. Internally generated intangible assets are not capitalised and expenditure is charged against profits in the year in which the expenditure is incurred. The useful lives of these intangible assets are assessed to be finite for insurance broking registers and indefinite for brand name. Intangible assets with finite lives are amortised over the useful life, currently estimated to be 10 and 12 years (2022: 10 years) for broking portfolios/client relationships and financial services businesses (life risk), and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an identifiable intangible asset with a finite useful life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, which is a change in accounting estimate. The amortisation expense on identifiable intangible assets with finite lives is recognised in the expense category of the Consolidated Statement of Comprehensive Income consistent with the function of the intangible asset. Gains or losses arising from derecognition of an identifiable intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Consolidated Statement of Comprehensive Income when the asset is derecognised.

Year ended 30 June 2023

Insurance broking registers $’000

Capitalised project costs $’000

Goodwill $’000

Brand name $’000

Total $’000

Cost Balance at the beginning of the year

5,538

559,847

123,081

–

688,466

Net addition/(disposals) not related to consolidation/ (deconsolidation)

4,714 1,026

–

4,307

–

9,021

Acquisition of controlled entities Deconsolidation of controlled entities Impairments/write-off during the year

850,707

402,010

54,886

1,308,629

(11)

(9,014) (1,219)

(1,604) (4,922) 24,156

– –

(10,629) (6,342) 71,899

(201)

Translation of foreign exchange rate movements

653

43,113

3,977

Total Intangibles at cost

11,719

1,443,434

547,028

58,863

2,061,044

Amortisation Balance at the beginning of the year Deconsolidation of controlled entities

2,299

– – – – –

63,657 (1,604) 35,920

– – – – –

65,956 (1,604) 38,285

–

Amortisation during the year

2,365

Translation of foreign exchange rate movements

299

1,267

1,566

Total Accumulated amortisation

4,963

99,240

104,203

Summary Net carrying amount at beginning of year Net carrying amount at end of year

3,239 6,756

559,847

59,424 447,788

– 622,510

1,443,434

58,863

1,956,841

AUB GROUP ANNUAL REPORT 2023

111