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

2. 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.

3. Purchased Goodwill and Marketing Assets in the SNANo
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

4. 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’.

5. Thank You