AUB Group Limited Annual Report 2023

INDEPENDENT AUDITOR’S REPORT

,PSDLUPHQW DVVHVVPHQW IRU JRRGZLOO DQG LQVXUDQFH EURNLQJ UHJLVWHUV )LQDQFLDO UHSRUW UHIHUHQFH 1RWHV

Why significant

How our audit addressed the key audit matter 2XU DXGLW SURFHGXUHV LQFOXGHG WKH IROORZLQJ 

$V D t 30 June 2023, the Group’s statement of financial SRVLWLRQ LQFOXGHV JRRGZLOO LQVXUDQFH EURNLQJ UHJLVWHUV DQG EUDQG WRWDOOLQJ ELOOLRQ UHSUHVHQWLQJ RI WRWDO DVVHWV 7KH *URXS UHFRJQLVHG DQ DGGLWLRQDO PLOOLRQ RI JRRGZLOO DQG PLOOLRQ RI LQVXUDQFH EURNLQJ UHJLVWHUV DQG EUDQG DULVLQJ IURP EXVLQHVV DFTXLVLWLRQV GXULQJ WKH \HDU SULQFLSDOO\ GXH WR WKH DFTXLVLWLRQ RI 7\VHUV $Q LPSDLUPHQW H[SHQVH RI PLOOLRQ ZDV UHFRJQLVHG IRU WKH \HDU HQGHG -XQH ,Q DVVHVVLQJ WKH UHFRYHUDELOLW\ RI JRRGZLOO LQVXUDQFH EURNLQJ UHJLVWHUV DQG EUDQG WKH *URXS SHUIRUPV DQ DQQXDO LPSDLUPHQW DVVHVVPHQW RU PRUH IUHTXHQWO\ LI LPSDLUPHQW LQGLFDWRUV DUH SUHVHQW The Group’s impairment DVVHVVPHQW LQYROYHV VLJQLILFDQW MXGJPHQWV DQG HVWLPDWHV LQFOXGLQJ  'HWHUPLQDWLRQ RI &DVK *HQHUDWLQJ 8QLWV (‘CGUs’)  $SSOLFDEOH 5HYHQXH DQG (DUQLQJV %HIRUH ,QWHUHVW DQG 7D[ (%,7 PXOWLSOHV 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

$VVHVVHG WKH &*8V DQG FRQILUPHG WKHLU XVH LQ WKH LPSDLUPHQW PRGHO EDVHG RQ RXU XQGHUVWDQGLQJ RI WKH nature of the Group’s business and management’s LQWHUQDO UHSRUWLQJ ,Q DGGLWLRQ WR WKH ZRUN RQ 7\VHUV RXWOLQHG LQ WKH DERYH .$0 ZH DVVHVVHG WKH GHWHUPLQDWLRQ RI WKH LQLWLDO UHFRJQLWLRQ RI JRRGZLOO DQG LQWDQJLEOH DVVHWV DULVLQJ IURP EXVLQHVV FRPELQDWLRQV GXULQJ WKH \HDU ( valuated the Group’s process regarding impairment DVVHVVPHQWV RI JRRGZLOO DQG LQVXUDQFH EURNLQJ UHJLVWHUV DQG WKH GHWHUPLQDWLRQ RI DQ\ DVVHW LPSDLUPHQW RXWFRPHV  $VVHVVHG WKH FRPSHWHQFH FDSDELOLWLHV DQG REMHFWLYLW\ of management’s expert who advised management ,QYROYHG (< YDOXDWLRQ VSHFLDOLVWV WR DVVLVW LQ DVVHVVLQJ WKH DSSURSULDWHQHVV RI WKH PHWKRGRORJ\ XVHG E\ PDQDJHPHQW LQFOXGLQJ WKH DSSOLFDEOH (%,7 PXOWLSOHV XVHG LQ WKH FXUUHQW \HDU LPSDLUPHQW FDOFXODWLRQV 7HVWHG WKH PDWKHPDWLFDO DFFXUDF\ RI WKH LPSDLUPHQW PRGHOV DQG DJUHHG UHOHYDQW GDWD EDFN WR management’s forecasts, audited year end results DQG RWKHU VXSSRUWLQJ GRFXPHQWDWLRQ $VVHVVHG WKH UHDVRQDEOHQHVV RI WKH HVWLPDWHG XVHIXO OLIH DWWULEXWHG WR LGHQWLILDEOH LQVXUDQFH EURNLQJ UHJLVWHU LQWDQJLEOH DVVHWV $ ssessed the Group’s sensitivity analysis and HYDOXDWHG ZKHWKHU DQ\ UHDVRQDEO\ IRUHVHHDEOH FKDQJH LQ DVVXPSWLRQV FRXOG OHDG WR DQ LPSDLUPHQW $VVHVVHG WKH DGHTXDF\ RI WKH GLVFORVXUHV DVVRFLDWHG ZLWK WKH LPSDLUPHQW DVVHVVPHQW LQFOXGHG LQ 1RWH G DQG WR WKH ILQDQFLDO UHSRUW   on EBIT multiples across the Group’s operating VHJPHQWV JHRJUDSKLFDO UHJLRQV DQG &*8V     

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

AUB GROUP ANNUAL REPORT 2023

143

Made with FlippingBook flipbook maker