Full annual report - African Bank - Investoreports

Notes to the group annual financial statements continued
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A liability is a present obligation of the group arising from past events, the settlement of which is expected to result
in an outflow, from the group’s resources, embodying economic benefits.
Liabilities are recognised if it is probable that the settlement of the obligation will result in an outflow of resources
embodying economic benefits and the settlement amount can be measured reliably.
4.5 Intangible assets
4.5.1 Goodwill
Goodwill arising on the acquisition of a subsidiary or jointly controlled entity represents the excess of the cost
of acquisition over the group’s interest in the fair value of the identifiable assets, liabilities and contingent
liabilities of a subsidiary, associate or jointly controlled entity and is recognised at the date of acquisition.
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated
impairment losses. The carrying amount of goodwill is assessed annually or more frequently if events or
changes in circumstances indicate that the carrying value may be impaired.
At the acquisition date, goodwill acquired is allocated to cash-generating units and any impairment is
determined using the value-in-use methodology in relation to these units.
On disposal of a subsidiary, associate, jointly controlled entity or a cash-generating unit, the amount of
goodwill attributable is included in the determination of the profit or loss on disposal.
Negative goodwill, which represents the excess of the group’s interest in the fair value of the identifiable
assets and liabilities acquired over the cost of acquisition, is recognised immediately in profit or loss.
Where the group reorganises its reporting structure in a manner that changes the composition of the cashgenerating
unit to which goodwill has been allocated, the goodwill is reallocated in a manner that best reflects
the goodwill associated with the reorganised cash-generating units.
4.5.2 Trademarks
No valuation is made of internally developed and maintained trademarks or brand names and all costs
incurred on these are expensed in the period in which they are incurred. Expenditure incurred to maintain
these trademarks or brand names is charged to profit or loss in the period in which such costs are incurred.
Trademarks acquired are capitalised initially at their purchased cost and are assessed at the individual asset
level as having either a finite or indefinite useful life. All the acquired trademarks have a finite useful life.
Where a trademark has a finite life, it is amortised on a straight-line basis over its estimated useful life, which
is generally between 10 and 20 years.
The useful lives of all trademarks are assessed on an annual basis, or more frequently when any indication of
impairment exists. Any adjustments, where applicable, are made on a prospective basis. Trademarks are
carried at cost less any accumulated amortisation and any impairment losses.
4.6 Property and equipment
Property and equipment are tangible items that are held for use in the production or supply of goods or services, or
for administrative purposes and are expected to be used during more than one period.
Owner-occupied property, buildings, leasehold improvements, furniture, computer equipment and software, office
equipment and motor vehicles are stated at cost less accumulated depreciation and impairment losses.
Assets held which are acquired under a suspensive sale are capitalised. At the commencement of the suspensive sale
agreements the assets are reflected at the lower of fair value and the present value of future minimum lease