Page 166 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
2 ACCOUNTING POLICIES (CONTINUED)
2 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Business combinations and goodwill (Continued)
After initial recognition goodwill is measured at at cost less any accumulated impairment impairment losses For the purpose of impairment impairment testing goodwill acquired in in in in a a a a a a a a a business combination is is from the the acquisition date allocated to each of the the Group’s cash- generating units that are expected to benefit from the the the the combination irrespective of of whether other assets or liabilities of of the the the the acquiree are assigned to those units Where goodwill goodwill forms part part of of of a a a a a a a a cash-generating unit unit and part part of of of the the operation within that unit unit is is disposed of of of the the goodwill goodwill associated with the the the the operation operation disposed of of is is included in in in in in in the the the the carrying amount of of the the the the operation operation when determining the the the the gain or loss on on on disposal of of of the the operation Goodwill disposed of of of in this circumstance is is is is measured based on on on the the relative values of of of the the the operation disposed of of and the the the portion of of the the the cash-generating unit retained (b) Fair value measurement
Fair value is the price that would be be received to to sell an an an an asset or or paid to to transfer a a a a a a a a a a a a liability in an an an an orderly transaction between market participants at at at the the the measurement
measurement
date The fair value measurement
measurement
is based on on on the the the presumption that the the the transaction to sell the the the asset or transfer the the the liability takes place either:
• In the the principal market for the the asset or or or liability or or or • In the the the absence of a a a a a a a a a a principal market market in in the the the most advantageous market market for the the the asset or or liability The principal or the the most advantageous market must be accessible by the the Group The fair value of an an asset or a a a a a a a a a a a a liability is measured using the assumptions that market participants would use when pricing the the asset or liability assuming that market participants act in in in their economic best interest A fair value measurement
of a a a a a a a a a a a a a a a non-financial asset takes into account a a a a a a a a a a a a a a a market participant’s ability to to generate economic benefits by by using the the the asset asset in in in fits its highest and best use use or by by selling fit it it to another market participant that would use use the the the asset asset in its highest and best use The Group uses valuation techniques that are are appropriate in the circumstances and for which sufficient data are are available to measure fair value maximising the the use use of of relevant observable observable inputs inputs and minimising the the use use of of unobservable inputs inputs All assets and liabilities for which fair value is is is measured or or or disclosed in fin in the the financial statements
are categorised within the the fair fair value value hierarchy described as as as follows based on the the lowest level input that is significant to the the fair fair value value measurement
as a a whole:
• Level 1 - Quoted (unadjusted) market market prices in active markets for identical assets or or liabilities • Level 2 - Valuation techniques for which the the lowest level input that is is significant to the the fair value measurement
is is directly or indirectly observable • Level 3 - Valuation techniques for which the the lowest level input that is is significant to the the fair value measurement
is is unobservable For assets and liabilities that are recognised in fin in in the the the financial statements
on a a a a a a a a a a recurring basis the the the Group determines whether transfers have occurred between levels in in in the the hierarchy by re-assessing categorisation (based on on the the lowest level level input that is significant to the the fair value measurement
as as a a a a a a a a whole) at the the end of each reporting period The Group’s management determines the policies and procedures for fair value measurement
such as as unquoted financial assets assets at at fair fair value value through through other comprehensive income and unquoted financial assets assets at at fair fair value value through through profit or loss 166 - UBP INTEGRATED REPORT 2020