Page 191 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
Estimated impairment of goodwill
Determining whether goodwill
is impaired requires an estimation of of the the the value in in in in use of of the the the cash-generating units to which goodwill
has been allocated The value in use calculation requires the the entity to to estimate the the future cash flows expected to to arise from the cash generating units and a a a a a a a a a a suitable discount rate in in order to to calculate present value Refer to to note 8 for key assumptions
used Pension benefits
The cost of of defined benefit pension pension plans and the present value of of pension pension obligation are determined using actuarial valuations The actuarial valuation valuation involves making assumptions
about discount rates rates expected rates rates of return on on on on assets future future salary increases increases mortality rates and future future pension increases increases Due to the the the complexity of the the the valuation the the the underlying assumptions
assumptions
and its long-term nature a a a a a a a defined benefit obligation is highly sensitive to changes fin in these assumptions
assumptions
All assumptions
are reviewed at at each reporting date Refer to note 21 Fair value of financial instruments
Where the the fair value of of financial financial financial assets and financial financial financial liabilities recorded fin fin in fin the the statement of of financial financial financial position cannot be derived from active markets their fair value is is determined using valuation techniques including the the discounted cash flow model model The inputs to these models are taken from observable markets where where possible but where where this is is not feasible a a a a a a degree of of judgment judgment is is required in in in in establishing fair values The judgments include considerations of of inputs such as liquidity risk risk credit risk risk and volatility Changes in fin assumptions
about these factors could affect the the reported fair value of financial instruments
Refer to note 12 Impairment of non-financial assets An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount which is the the higher of of its its fair value value less cost to sell and its its value value in in in use The recoverable amount of of the the investments in in in foreign subsidiaries has been determined using the the fair value less cost to to sell model model Main assumptions
to to the the valuation model model included the fair value of property plant and and equipment
and and discount for liquidity (refer to note 10) Land conversion rights
The Land Conversion Rights (“LCRs”) granted under the Sugar Industry Efficiency Act 2001 have been tested for impairment using the the the the discounted cash flow method (the “DCF”) The assumptions
used in in in the the the the DCF DCF include the the the the average conversion rates of agricultural land land to residential land land infrastructure cost cost and and and selling costs among others 4 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s and and the Company’s principal financial liabilities comprise bank loans and and overdrafts finance leases loan loan from shareholders and and and trade and and and payables The main purpose of these financial liabilities is to finance the the Group’s and and and the the the Company’s Company’s operations The Group’s and the the the Company’s Company’s principal financial financial assets included other current financial financial asset trade and and and and and other receivables and and and and and cash at at at bank and and and and and on on hand that arise directly from its operations The Group and and and and and the the Company also holds equity investments classified at Fair Fair value value through through profit or loss and Fair Fair value value through through other comprehensive income The The Group Group and and and the the Company Company are exposed to market risk risk risk credit risk risk risk and and and liquidity risk risk risk The The Group’s and and and the the Company’s senior management management management oversees the the the the management management management of these risks Senior management management management ensures that the the the the Group’s and the the the the Company’s financial financial risk-taking activities are are governed by appropriate policies and and procedures and and that financial financial risks are are identified measured and and managed in accordance with group group policies and and group group risk objectives UBP INTEGRATED REPORT 2020
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FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
ABOUT US INTRODUCTION