Impairment assessment

Impairment assessment
All non-current tangible assets are reviewed for impairment
whenever events or changes in circumstances indicate that the
carrying amounts may not be recoverable. For our impairment
assessment we identify cash generating units (CGUs), i.e. the
smallest groups of assets that generate cash inflows that are largely
independent of cash inflows from other assets or groups of assets.
The recoverable amount of an asset is the higher of its fair value less
cost of disposal and its value in use. Value in use represents the
present value of the future amount expected to be recovered through
the cash inflows and outflows arising from the asset’s continued use
and subsequent disposal.
We recognise any reduction in the carrying value as an expense in the
income statement in the reporting period in which the impairment
loss occurs.
An impairment assessment is performed at the level of our Telstra
Entity ubiquitous telecommunications network CGU