INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
105.
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For the financial year ended 31 December 2015
15.
GOODWILL
Group
2015
2014
Rp million
Rp million
At 1 January
3,253,637
3,247,532
Acquisition of subsidiaries
–
6,105
At 31 December
3,253,637
3,253,637
Goodwill arising from business combination was allocated to the following cash-generating units for impairment
testing:
Integrated plantation estates of Lonsum
2,909,757
2,909,757
Plantation estates of PT GS
8,055
8,055
Plantation estates of PT MPI
2,395
2,395
Plantation estates of PT SBN
234
234
Plantation estates of PT KGP
29,140
29,140
Integrated plantation estates of PT CNIS
7,712
7,712
Plantation estates of PT LPI
37,230
37,230
Plantation estates and research facility of PT SAIN
113,936
113,936
Plantation estates of PT RAP
3,388
3,388
Plantation estates of PT JS
1,533
1,533
Integrated plantation estates of PT MISP
34,087
34,087
Plantation estates of PT IBP
8,319
8,319
Plantation estates of PT SAL
86,996
86,996
Plantation estates of PT WKL
4,750
4,750
Plantation estates of PT MLI
6,105
6,105
Total
3,253,637
3,253,637
Goodwill was tested for impairment as at 31 October 2015 and 2014. As at 31 December 2015 and 2014, there was no
significant change in the assumptions used by management that could have a significant impact in determining the
recoverable value of the goodwill.
No impairment loss was recognised as at 31 October 2015 and 2014 as the recoverable amounts of the goodwill were
in excess of their respective carrying values. The summary of impairment testing on the goodwill is disclosed in the
succeeding paragraphs.
Except for goodwill allocated to the plantation estates of Lonsum, PT LPI, PT IBP and PT SBN, the recoverable value
of the goodwill allocated to all other plantation estates as at 31 October 2015 was determined based on fair value less
costs of disposal (“FVLCD”), using discounted cash flow method. The FVLCD derived is categorised under Level 3 of the
fair value hierarchy.
The recoverable value of the goodwill allocated to the plantation estates of Lonsum, PT LPI, PT IBP and PT SBN has
been determined based on value-in-use calculations.
