Rangatira Annual Report 2023 - Flipbook - Page 57
Ra n g a t i ra An n u a l Re p ort 2023
Rangatira Group
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2023
Note 12 Goodwill
Goodwill arising on the acquisition of a subsidiary is recognised as an asset at the date that control is acquired. Goodwill is measured
as the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value
of the acquirer’s previously-held equity interest (if any) in the acquiree over the fair value of the identifiable net assets recognised.
Goodwill is not amortised, but tested for impairment annually and whenever there is an indication that the goodwill may be impaired.
Any impairment is recognised immediately in the income statement and is not subsequently reversed.
Goodwill by subsidiary
2023
$000
2022*
$000
Auckland Packaging Company Limited
2,977
2,977
Bio-Strategy Holdings Limited
6,626
6,626
17,835
17,835
273
-
27,711
27,438
Boulcott Holdco Limited
Mrs Higgins (2004) Limited
Total goodwill
*Goodwill figures have been restated as a result of finalising the valuations for the 2022 business acquisitions - see Note 27
Cost
Additions
2023
$000
2022*
$000
27,438
13,067
273
18,987
-
(4,616)
27,711
27,438
Transferred to Assets held for sale
Total goodwill
*Goodwill figures have been restated as a result of finalising the valuations for the 2022 business acquisitions - see Note 27
Goodwill has been allocated for impairment testing purposes to the cash-generating units of each subsidiary. The recoverable amount
of goodwill is determined from fair value less cost to sell. The key assumptions applied in the calculation are the expected earnings
and an appropriate earnings multiple. Management estimates the earnings multiples using current market assessments and the risks
specific to the assets of the cash generating unit. Changes in earnings are based on past practices and expectations of future market
changes. Management prepares earnings forecasts based on strategic plans approved by the Board.
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