Page 231 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 229
Annual Report 2021/22

4.13 Intangible assets For the purpose of impairment testing, goodwill acquired in a business
Intangible assets acquired through business combination are initially combination is allocated to each of the subsidiary’s cash generating
recognised at their fair value on the date of business acquisition while units (or group of cash-generating units) that are expected to benefit
intangible assets acquired in other cases are recognised at cost. from the synergies of the combination. The subsidiary estimates the
Following the initial recognition, the intangible assets are carried at cost recoverable amount of each cash-generating unit (or group of cash-
less any accumulated amortisation and any accumulated impairment generating units) to which the goodwill relates. Where the recoverable
losses (if any). amount of the cash-generating unit is less than the carrying amount,
an impairment loss is recognised in profit or loss. Impairment losses
Intangible assets with finite lives are amortised on the straight-line relating to goodwill cannot be reversed in future periods.
basis over the economic useful life and tested for impairment whenever
there is an indication that the intangible asset may be impaired. 4.15 Assets held for sale and discontinued operations
The amortisation period and the amortisation method of such intangible The Group classifies disposal assets as held for sale if their carrying
assets are reviewed at least at each financial year end. The amortisation amounts will be recovered principally through a sale transaction rather
expense is charged to profit or loss. than through continuing use. The criteria for held for sale classification
is regarded as met only when the sale is highly probable and the
A summary of the intangible assets with finite useful lives is as follows: disposal assets are available for immediate sale in its present condition.
Management must be committed to the sale, which should be expected
Intangible assets acquired through 3 - 7 years to qualify for recognition as a completed sale within one year from the
business combination date of classification.
Computer software 2 - 10 years
Disposal assets classified as held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
No amortisation is provided on computer software under development.

4.16 Business combinations under common control
4.14 Goodwill
Business combinations under common control are accounted for
Goodwill is initially recorded at cost, which equals to the excess of cost using the pooling of interests method, with the cost of the business
of business combination over the fair value of the net assets acquired. combinations under common control being the fair value, at the date of
If the fair value of the net assets acquired exceeds the cost of business exchange, of the consideration transferred to obtain control. The assets
combination, the excess is immediately recognised as gain in profit and liabilities of the entities pooled are recognised based on their book
or loss. values, in proportion to the interests previously under common control.

Goodwill is carried at cost less any accumulated impairment losses. Differences between the cost of the business combination under common
Goodwill is tested for impairment annually and when circumstances control and the acquirer’s proportionate interests in the book value of
indicate that the carrying value may be impaired.