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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER, 2010
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
(Continued)
8. Goodwill
In accordance with International Financial Reporting Standard 3: “Business Combinations”, goodwill acquired
through business combinations has been allocated to the Group’s cash generating units that are expected to benefit
from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the cash
generating units to which goodwill relates. Goodwill represents that arising from the acquisition of Premix &
Precast Concrete Incorporated (PPCI) in 2002 as follows:
2010 2009
$ $
Goodwill at cost 1,764 1,764
Accumulated impairment – –
Net carrying amount 1,764 1,764
Impairment testing of goodwill
As required by IAS 36: Impairment of assets goodwill is subject to an annual impairment test. The following
table highlights the goodwill and impairment information used in the impairment test performed at 31 December
2010:
Carrying amount of goodwill 1,764
Basis of recoverable amount
Value in use
Discount rate 10.5%
Cash flow projection term
5 years
Growth rate (extrapolation period) 1.0%
The values assigned to key assumptions reflect past experience. The recoverable amount of business units has
been determined based on value-in-use calculations using pre-tax cash flow projections based on financial budgets
approved by senior management and the Board of Directors.
2010 2009
$ $
9. Inventories
Raw materials and work in progress 38,158 31,744
Plant spares and consumables 9,254 11,123
47,412 42,867
Inventories are shown net of provisions of $1.160 million (2009: $1.160 million) in relation to plant spares and
consumables. Inventories charged against operating profit is disclosed in Note 3.
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