In terms of IFRS 3.32, the acquirer shall recognise goodwill as of the acquisition date measured as the excess of (a) over (b) below:

1. the aggregate of:
   1. the consideration transferred measured in accordance with this IFRS, which generally requires acquisition-date fair value;
   2. the amount of any non-controlling interest in the acquiree measured in accordance with this IFRS; and
   3. in a business combination achieved in stages, the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree.
2. the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed measured in accordance with this IFRS.

Goodwill is not amortised but is tested for impairment at least annually in accordance with IAS 36.

For the purpose of impairment testing, goodwill acquired in a business combination shall, from the acquisition date, be allocated to each of the acquirer’s cash-generating units, or groups of cash-generating units, that is expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of units. Each unit or group of units to which the goodwill is so allocated shall:

1. represent the lowest level within the entity at which the goodwill is monitored for internal management purposes; and
2. not be larger than an operating segment as defined by paragraph 5 of IFRS 8 Operating Segments before aggregation.

A cash-generating unit to which goodwill has been allocated shall be tested for impairment annually, and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit, including the goodwill, with the recoverable amount of the unit. If the recoverable amount of the unit exceeds the carrying amount of the unit, the unit and the goodwill allocated to that unit shall be regarded as not impaired. If the carrying amount of the unit exceeds the recoverable amount of the unit, the entity shall recognise an impairment loss.

The impairment loss shall be allocated to reduce the carrying amount of the assets of the unit (group of units) in the following order:

1. first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group of units); and
2. then, to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units).

An impairment loss recognised for goodwill shall not be reversed in a subsequent period.

Goodwill acquired for valuable consideration is deemed an asset having a limited useful life.

Goodwill shall be depreciated over its useful life. If it is not possible to reliably estimate the foreseeable useful life, then a period of ten years is assumed.

Regardless of whether the useful life of any assets forming part of the fixed assets is limited in time, unscheduled depreciations are to be performed for these assets if a permanent impairment of their value is to be expected, in order to recognise them at the lower value attributable to them as per the balance sheet date.

A value recognised at a lower rate for goodwill acquired for valuable consideration is to be upheld even if the grounds for which it was applied have ceased to exist.