AUB Group Limited Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

7 BUSINESS COMBINATIONS AND TRANSACTIONS INVOLVING GAIN OR LOSS OF CONTROL (CONTINUED) b) Loss of Control When a 100% disposal occurs the Group derecognises all assets and liabilities previously recognised in relation to the disposed entity including associated goodwill. A gain or loss is recognised in relation to the disposal based on the difference between the carrying value of net assets (including goodwill) associated with the entity and the sale price. When a partial disposal occurs leading to the Group losing control of the entity, the Group derecognises all assets, liabilities and NCI previously recognised in relation to the disposed entity including associated goodwill with an investment in associate recognised in relation to the remaining interest continued to be held by the Group. A gain or loss is recognised in relation to the disposal based on the difference between the share (portion of interest being disposed) of net assets (including goodwill) associated with the entity and the sale price. i) During the current period, the following transactions occurred: Effective 31 January 2023, the Group disposed all of its interest in Austbrokers Coast to Coast Pty Ltd (“Coast to Coast”). On that date Coast to Coast ceased to be a controlled entity.

Transaction date(s)

2023 %/$’000

2022 %/$’000

Business Disposed

Austbrokers Coast to Coast Pty Ltd

1/01/2023

–

51.00

Various

Various

Various 13,633

Various

Total consideration received for all additional interests disposed

Less cash disposed

(3,923)

Receipts for disposal of consolidated entities, net of cash disposed

9,710

Total goodwill derecognised on disposal Total intangibles derecognised on disposal Total non-controlling interest derecognised

(9,014) (1,604) (2,020)

ii) During the previous period, there were no individually significant transactions which resulted in the Group losing control of any of its subsidiaries.

8 INVESTMENT IN ASSOCIATES The Group’s investments in its associates are accounted for under the equity method of accounting in the Consolidated Financial Statements. These are entities in which the Group has significant influence and which are not controlled entities. The Group deems they have significant influence if they have more than 20% of the voting rights. The financial statements of the associates are used by the Group to apply the equity method. The reporting dates of the associates and the AUB Group are identical and adjustments are made to bring into line dissimilar accounting policies used by associates. The investment in associates is carried in the Consolidated Statement of Financial Position at cost plus post-acquisition changes in the Group’s share of net assets of the associates, less dividends and any impairment in value. The Consolidated Statement of Comprehensive Income reflects the Group’s share of the results of operations of the associates. Refer to Note 14 Impairment Testing of Identifiable Intangible Assets and Goodwill. On partial acquisition whilst maintaining significant influence the purchase price is added to the investment in associate carrying value, and on partial disposal whilst maintaining significant influence the portion of interest in the entity being sold is proportionately derecognised from the investment in associate carrying value. As part of impairment testing we consider the recent purchase/disposal prices when determining if there are indicators of impairment.

AUB GROUP ANNUAL REPORT 2023

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