Wellcom_FY11-Financial-Report

Further details of significant accounting estimates

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Unformatted text preview: an estimation of the recoverable amount of the cash-generating units, using a value in use discounted cash flow methodology, to which the goodwill is allocated. Further details of significant accounting estimates and assumptions applied are provided in note 13. Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience. In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary. Determination of fair value for stage acquisition accounting As outlined in note 30 management, in applying the requirements of staged acquisition accounting, had to estimate the fair value of the Group’s pre-existing investment in iPrint Corporate Pty Ltd for the purposes of determining the goodwill arising on consolidation. In arriving at the fair value management performed discounted cash flows and maintainable earnings calculations using the budgeted financial information of iPrint Corporate Pty Ltd. e) Revenue recognition Revenue is recognised and measured at the fair value of the...
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This document was uploaded on 02/06/2014.

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