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ANNUAL FINANCIAL STATEMENTS
Notes to the financial statements
continued
for the year ended 30 September 2014
180
Tiger Brands Limited Integrated Annual Report
2014
(R’million)
2014
Restated*
2013
13 Impairment testing of non-financial assets
continued
13.4
Specific impairments in the current year
The impairments recognised within the DFM business arose due to
overcapacity within that business. For further details relating to the
impairment refer to page 29. Additional impairments were also recognised
during the year as a result of the annual impairment assessments
performed on goodwill and other intangible assets. The related
impairments arose mainly as a result of a decline in volumes within the
respective segments. Furthermore, the carrying value of the company’s
investment in DFM and Deli Foods has also been evaluated and an
impairment of R896,7 million recognised at a company level.
Nigeria – DFM goodwill and related intangible assets
(848,7)
–
Nigeria – DFM property, plant and equipment (refer note 11.6)
(105,2)
–
Consumer Brands – property, plant and equipment (refer note 11.6)
(40,1)
–
Nigeria – Deli Foods goodwill
(48,0)
–
HPCB – indefinite life intangible assets
(15,7)
–
HPCB – write-off of non-core domestic trademarks
(4,0)
(2,9)
13.5
Changes in key assumptions
The determined value in use of each CGU is most sensitive to the
discount rate. No reasonably probable change in any of the above key
valuation assumptions would cause the carrying amount of CGUs to
materially exceed their recoverable amounts, with the exception of the
specific CGU’s noted below.
Total impairment impact
+1%
increase
in WACC
‒
1%
decrease
in WACC
Nigeria – DFM goodwill and related intangible assets
No impact
– fully
impaired
No impact
– fully
impaired
Nigeria – DFM property, plant and equipment
(109,7)
–
Nigeria – Deli Foods goodwill
(105,6)
–
HPCB – indefinite life intangible assets
(20,6)
(9,6)
*
The amounts have been restated due to the adoption of IAS 19R.