Note 16

		2016 R'000	2015 R'000

16.	Goodwill
	Carrying value at beginning of year	13 567 032	11 723 176
	Exchange rate adjustments	2 382 503	(46 365)
	Acquisition of businesses	906 293	1 910 777
	Disposal and unbundling of businesses	(14 266 681)	(20 556)
	Impairment of goodwill	(52 111)	–
	Carrying value at end of year	2 537 036	13 567 032
	Goodwill acquired through business combinations, is allocated for impairment testing purposes to CGUs which reflect how it is monitored for internal management purposes, namely the various segments of the Group. The carrying amount of goodwill was subject to an annual impairment test using either the fair value less costs to sell method or the discounted cash flow basis.
	The carrying amount of goodwill was allocated to cash-generating units as follows:
	Bidvest Automotive	229 132	229 132
	Bidvest Commercial Products	404 987	177 560
	Bidvest Electrical	58 066	58 066
	Bidvest Financial Services	156 028	117 710
	Bidvest Freight	58 132	58 132
	Bidvest Office and Print	196 956	167 004
	Bidvest Services	1 177 306	1 176 465
	Bidvest Namibia	250 144	123 042
	Bidvest Properties	4 501	4 501
	Bidvest Corporate and investments	1 784	53 327
	Unbundled operations		11 402 093
		2 537 036	13 567 032

The most significant portion of the Group’s goodwill from continuing operations, relates to the Bidvest Services and Bidvest Commercial Products CGUs. The recoverable amounts of these CGUs were determined using the fair value less costs to sell method. The calculation used projected annualised earnings based on actual operating results. A price earnings multiple was applied to obtain the recoverable amount for the business units. The earnings yield is considered to be consistent with similar companies within the various industries in which the CGU’s operate. A price earnings multiple of 9,0 (2015: 9,2) was used for Bidvest Services valuation and 9,3 (2015: 8,0) for the Bidvest Commercial Products valuation. The valuations resulted in a significant surplus over carrying values of the CGUs and thus the Directors believe that a reasonably possible change in the multiple, would not result in an impairment of the carrying value of goodwill. The valuation method is consistent with that used in the prior years and is considered a Level 3 type valuation in accordance with IFRS 13 Fair Value Measurement.

The remaining goodwill of continuing operations of R1,0 billion (2015: R1,0 billion) is allocated across multiple CGUs. The recoverable amount for these remaining units was calculated on the aforementioned basis. An impairment of R52 million was identified and raised in the Bidvest Corporate and investments segment.