Critical accounting judgements and key sources of estimation uncertainty

12 Months Ended

Dec. 31, 2025

Accounting Judgements And Estimates [Abstract]

Critical accounting judgements and key sources of estimation uncertainty

4        Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the Directors are required to make judgments,

estimates and assumptions that affect the reported carrying amounts of assets, liabilities, income and

expenses. The estimates and associated assumptions are based on historical experience and other

factors that are considered to be relevant and reasonable under the circumstances.

Estimates and assumptions are reviewed on an ongoing basis and revisions to accounting

estimates are recognized in the period an estimate is revised. No critical accounting judgments have been

applied in the preparation of these financial statements. Key sources of estimation uncertainty are as

follows:

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the recoverable amount of the

cash generating unit to which the goodwill has been allocated, which is the higher of the value in use or

fair value less costs of disposal. The value in use calculation requires the Group to estimate both the

future cash flow from the cash generating unit and a suitable discount rate in order to calculate

the present value.

A number of factors, many of which the Group has limited ability to control, could cause actual

results to differ from the estimates and assumptions employed. These factors include:

•a prolonged global or regional economic downturn;

•a significant decrease in the demand for the Group’s services;

•a significant adverse change in legal factors or in the business climate;

•an adverse action or assessment by a regulator; and

•successful efforts by our competitors to gain market share in our markets.

Where the actual future revenues are less than expected, or changes in facts and circumstances

which result in a downward revision of future cash flows or an upward revision of the discount rate occur,

a material impairment loss or a further impairment loss may arise when a cash generating unit has

previously been impaired.

The key sources of estimation uncertainty in the assessment of goodwill impairment are the

assumptions around the discount rates, revenue and cost growth rates as well as terminal growth rates.

The value in use calculation uses the cash flows inferred from budgets or achieved during the period and

applies the assumptions above to create a discounted cash flow model. The cash flows do not include

restructuring activities that the Group is not yet committed to or significant future investments that will

enhance the performance of the assets of the cash generating unit being tested. The recoverable amount

is sensitive to the discount rate used as well as the growth rates both growth and terminal. These

estimates are most relevant to the testing of goodwill for impairment. The key assumptions used to

determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed

and further explained in note 13.