Identifiable assets and liabilities on amalgamation are as follows: ASSETS MUR m Non current assets 649.9 Current assets 418.9 Total assets 1,068.8 LIABILITIES Non current liabilities 703.0 Current liabilities 210.7 Total liabilities 913.7 2.6 Impairment of investment in subsidiaries An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators as available. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years unless a longer period can be justified. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. 2.7 Changes in accounting policies and disclosures Application of new and revised International Financial Reporting Standards (IFRSs) In the current period, the Group and the Company have applied all of the new and revised Standards and Interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of the IASB that are relevant to their operations and effective for accounting periods beginning on 1 January 2023. Standards, Amendments to published Standards and Interpretations effective in the reporting period IFRS 1 First-time Adoption of International Financial Reporting Standards Annual Improvements to IFRS Standards 2018– 2020: Extension of an optional exemption permitting a subsidiary that becomes a first-time adopter after its parent to measure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to IFRSs. A similar election is available to an associate or joint venture. The amendments have no impact on the Group’s financial statements. IFRS 3 Business Combinations Reference to the Conceptual Framework: The amendment updates a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. The amendments have no impact on the Group’s financial statements. 2. ACCOUNTING POLICIES Continued 2.5 Amalgamation of entity under common control Continued EXPLANATORY NOTES 30 SEPTEMBER 2023 106 CIM FINANCE ANNUAL REPORT
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