Notes to the annual financial statements

for the year ended 30 September

 
 
    Group   Company
    2010  
Rm  
  2009  
Rm  
  2010  
Rm  
  2009  
Rm  
12.   GOODWILL                
  Carrying value at the beginning of the year   460,6     415,3     —     —  
  Acquisition of businesses and subsidiaries   23,0     44,5     —     —  
  IFRS 3 profit on acquisition of subsidiary   8,2     —     —     —  
  Minor acquisitions in existing businesses and subsidiaries   0,3     0,8     —     —  
  Existing goodwill acquired with transfer of division           13,9     —  
  Carrying value at the end of the year   492,1     460,6     13,9     —  
  Goodwill   496,3     464,8     13,9     —  
  Accumulated impairments   (4,2)    (4,2)    —     —  
    492,1     460,6     13,9     —  
  Carrying value attributable to:                
  – Joint ventures   10,7     10,7     —     —  
  – Subsidiaries   481,4     449,9     13,9     —  
    492,1     460,6     13,9     —  
  The recoverable amounts of the cash-generating units (CGUs) are determined as the greater of fair value less costs to sell or value-in-use.  
  Discounted cash flow calculations have been used to determine the recoverable amount.  
  The key assumptions for the discounted cash flows are those regarding the discount rates and growth rates and are based on management's past experience.  
  Management estimates discount rates using pre-tax rates that reflect the current market assessments of the time value of money and the risks specific to the CGUs. The growth rates are based on sustainable growth rates in earnings.  
         
        Group
  2010       Quince     Nashua  
Mobile  
  CBI-electric:  
African  
Cables  
  Carrying amount of goodwill allocated to the CGU (Rm)      124,4     178,1     59,3  
  Pre-tax discount rates (%)      11,9     14,7     12,5  
  Sustainable growth rates (%)      5,0     5,0     5,0  
  The balance of goodwill of R130,3 million (2009: R98,8 million) has been allocated to other CGUs, none of which are considered significant in relation to total goodwill.                
                 
                Company
  2010               Pansolutions  
  Carrying amount of goodwill allocated to the CGU (Rm)              13,9  
  Pre-tax discount rates (%)              11,3  
  Sustainable growth rates (%)              4,0