UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 150
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021 (continued)
9
Goodwill
2021
€m
2020
€m
At 1 January
Additions relating to acquisitions (Note 22)
Net exchange movement
1,478.8
380.4
49.4
1,506.9
41.7
(69.8)
Carrying amount 31 December
1,908.6
1,478.8
At 31 December
Cost
Accumulated impairment losses
1,976.3
(67.7)
1,546.5
(67.7)
Carrying amount
1,908.6
1,478.8
Cash generating units
Goodwill acquired through business combinations is allocated, at acquisition, to CGUs that are expected to benefit from synergies in that
combination. The CGUs are the lowest level within the Group at which the associated goodwill is monitored for internal management
reporting purposes and are not larger than the operating segments determined in accordance with IFRS 8 Operating Segments.
A total of 11 (2020: 11) CGUs have been identified and these are analysed between the five business segments in the Group as set out
below. Assets and liabilities have been assigned to the CGUs on a reasonable and consistent basis.
Cash-generating units
2021
2020
Insulated Panels
Insulation
Light & Air
Water & Energy
Data & Flooring
Total
2021
Goodwill (€m)
2020
6
1
1
1
2
6
1
1
1
2
962.8
457.1
287.6
110.0
91.1
873.9
232.9
205.7
81.0
85.3
11
11
1,908.6
1,478.8
Significant goodwill amounts
Management has assessed that, in line with IAS 36 Impairment of Assets, there are 4 CGUs that are individually significant (greater than
10% of total goodwill) that require additional disclosure and are as follows:
Panels
Western Europe
Panels
Joris Ide
Insulation
Light
& Air
2021
2020
2021
2020
2021
2020
2021
2020
Goodwill (€m)
313.8
Discount rate (%)
7.6
Excess of value-in-use over carrying amount (€m) 2,810.6
291.6
8.6
1,971.1
344.4
8.1
1,862.6
334.6
8.3
781.2
457.1
7.9
2,590.4
232.9
8.7
1,578.3
287.6
7.4
786.8
205.7
8.6
508.2
The goodwill allocated to these 4 CGUs (2020: 5 CGUs) accounts for 74% (2020: 83%) of the total carrying amount of €1,908.6m (2020:
€1,478.8m). The remaining goodwill balance of €505.7m (2020: €246.8m) is allocated across the other 7 CGUs (2020: 6 CGUs), none of
which are individually significant. Similar assumptions and techniques are applied on the impairment testing of these CGUs.
None of the individually significant CGUs are included in the “Sensitivity analysis” section as it is not considered reasonably possible that
there would be a change in the key assumptions such that the carrying amount would exceed value-in-use. Consequently, no further
disclosures have been provided for these CGUs.
Impairment testing
Goodwill acquired through business combinations has been allocated to the above CGUs for the purpose of impairment testing.
Impairment of goodwill occurs when the carrying value of the CGU is greater than the present value of the cash that it is expected to
generate (i.e. the recoverable amount). The Group reviews the carrying value of each CGU at least annually or more frequently if there is
an indication that a CGU may be impaired.
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