Page 182 - CJ 2019 INTEGRATED REPORT

180 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Insurance contracts (Continued)
(d) Reinsurance contracts held (continued)
The The benefits to which the subsidiary is is is entitled under fits its reinsurance reinsurance contracts held are recognised as as as as as reinsurance reinsurance assets assets assets These assets assets assets consist of short-term balances due from reinsurers (classified (classified within loans and and receivables) as as as as as as as as as well as as as as as as as as longer term term receivables receivables (classified (classified as as as as as as as as reinsurance assets) that are are dependent on on on on the the expected claims and and benefits arising under the the the the related reinsured reinsured insurance insurance insurance contracts contracts Amounts recoverable from or or due to reinsurers are are measured consistently with with with the the the the amounts associated with with with the the the the reinsured reinsured insurance insurance insurance contracts contracts and in in in in in in in in accordance with with with the the terms of each reinsurance contract Reinsurance liabilities are are primarily premiums payable for reinsurance reinsurance contracts and are are recognised as as an an an an an expense when due due In certain cases a a a a a a a a a a a a a a a a a a a a a a a a reinsurance reinsurance contract contract contract is is entered into retrospectively to to to reinsure reinsure a a a a a a a a a a a a a a a a a a a a a a a a notified claim under the the the the the the the the subsidiary’s property or or or casualty insurance insurance contracts Where the the the the the the the the premium due due to to to the the the the the the the the reinsurers differs from the the the the the the the the liability established by the the the the the the the the subsidiary subsidiary for the the the the the the the the related claim the the the the the the the the difference is is is amortised over the the the the the the the the estimated remaining settlement period The subsidiary subsidiary assesses its its reinsurance reinsurance reinsurance assets for impairment on a a a a a a a a a a a a a a a a a a quarterly basis If there is is is objective evidence that the the the the the reinsurance reinsurance reinsurance asset asset asset is is is is impaired the the the the the the the subsidiary subsidiary subsidiary reduces the the the the the the the carrying amount amount of o the the the the the the the reinsurance reinsurance reinsurance asset asset asset to its its recoverable amount amount and recognises that that impairment loss loss in in in in in in fin profit or or or loss loss The The subsidiary subsidiary gathers the the the the the the objective evidence that that a a a a a a a a a a a a a a a a a a a a a a a a a a reinsurance asset asset asset is is is is impaired using the the the the the same same process adopted for for financial financial assets assets held at at at at at amortised cost The The impairment loss is is also calculated following the the the same same method used for for these financial financial assets assets (e) Receivables and payables related to insurance contracts Receivables and and and payables are recognised when due due These include amounts due due to and and and from agents brokers and and and insurance insurance insurance contract holders If there is is is is objective evidence that that the the the the the insurance insurance insurance receivable receivable is is is is impaired the the the the the Company reduces the the the the the the the the carrying amount of o the the the the the the the the insurance insurance insurance insurance receivable receivable receivable accordingly and recognises that that that impairment loss loss in in in in in in in in profit or or loss loss loss The The Company gathers the the the the the the the objective evidence that that an an an an an an an insurance insurance receivable receivable receivable is is is impaired using the the the the the the the same same process adopted for for loans and receivables The The impairment loss loss is is also calculated under the the the the the same same method used for for these financial assets Intangible assets (a) Goodwill
Goodwill
arises on on on on the the the the the acquisition of of of subsidiaries associates and and and joint ventures and and and represents the the the the the excess of of of the the the the the consideration transferred over the the the the the the the the the Group’s interest interest in in in in in in in net net fair fair value value of of of of of the the the the the the the the the net net identifiable assets liabilities liabilities and and and and contingent liabilities of of of the the the the the the acquiree acquiree and the the the the the the fair fair value value of of of the the the the the the non-controlling interest interest in in in in in in the the the the the the acquiree acquiree For the the the the purpose of of of of of impairment testing goodwill acquired in in in in in a a a a a a a a a a business combination combination is is allocated to to to each of of of of of the the the the CGUs CGUs or or or or or groups of of of of of CGUs CGUs that is is is is expected to to to to benefit from the the the the the the the the synergies of of of of of the the the the the the the the combination combination Each unit unit or or or or or group group of of of of of units to to to to which which the the the the the the the goodwill goodwill is is is is allocated represents the the the the the the the lowest level level within the the the the the the the entity at at at at at at which which the the the the the the the goodwill goodwill is is is is monitored monitored for internal management purposes Goodwill
is is monitored at at at at the the the the operating segment level level Goodwill
impairment impairment reviews are are undertaken annually or or or more frequently if events or or or changes in in in circumstances indicate a a a a a a a a a a a a a a a a a a a a a a a a potential impairment impairment impairment The carrying value value value of of goodwill is is is is compared to to the the the recoverable amount which is is is is the the the higher of of value value value in in in use and and the the the fair value value value less costs to to sell Any impairment impairment is is is is is recognised immediately as an an an expense and and is not subsequently reversed (b) Computer software costs Acquired computer software software licenses are are are capitalised on the the basis of of of costs incurred to to acquire and bring to to use the the specific software These costs are amortised over their estimated useful life (5 years) Costs associated with developing or maintaining computer software programmes are are recognised as as as an expense as as as incurred (c) Patent rights and licences
Separately acquired patents and and licences
licences
are are initially recognised at at at at at at at at at cost cost cost Subsequently they are are carried at at at at at at at at at cost cost cost less amortisation Amortisation is is is is calculated using the the the the straight-line method to allocate the the the the cost cost cost of of patent patent and and licences
licences
over their useful lives of 5 5 – 15 years CURRIMJEE JEEWANJEE AND COMPANY LIMITED