Results of the AEG e-Consultation on Purchased Goodwill and Marketing Assets in the SNA

Purchased Goodwill and Marketing Assets in the SNA Canberra II Group made following recommendations to the AEG for its consideration: Nature of purchased goodwill need to be clarified in 1993SNA; Although marketing (MA) assets are separately identifiable, be included in the same category as purchased goodwill; Valuation principles for purchased goodwill and MA should be applied consistently (listed or unlisted corpn, quasi corpn or unincorporated); Internally generated goodwill and MA should be excluded except where evidenced by a sale; Purchased goodwill and MA continue to be treated as non-produced; Should not be amortized at a predetermined rate but made subject to an impairment test.

Purchased Goodwill and Marketing Assets in the SNA No Questions Yes No Opin 1 Do you agree that an asset class 'Purchased goodwill and marketing assets' should replace the existing 'purchased goodwill'? 15 - 2 Do you agree that the economic nature of purchased goodwill and MA need to be clarified in 1993 SNA 3 Do you agree that the Valuation principles for purchased goodwill and MA should be applied consistently 4 Do you agree that internally generated goodwill and MA should continue to be excluded, except when their value is evidenced by sale? 12 5 Do you agree that the assets should continue to be classified an non-produced assets? 6 Do you agree that the assets should not be amortised at a predetermined rate but made subject to an impairment test? 14

Purchased Goodwill and Marketing Assets in the SNA Conclusions: Result of the consultation shows that the AEG members participating in the e-discussion overwhelmingly support the proposals of Canberra II Group on the ‘Purchased goodwill and marketing assets’.

Thank You