167 SWIRE PROPERTIES ANNUAL REPORT 2024 17. Intangible Assets (continued) Goodwill HK$M Computer Software HK$M Others HK$M Total HK$M Cost: At 1st January 2024 1,341 393 205 1,939 Translation differences (47) – (2) (49) Additions – 46 – 46 Transfer to assets classified as held for sale – – (198) (198) At 31st December 2024 1,294 439 5 1,738 Accumulated amortisation: At 1st January 2024 – 239 145 384 Translation differences – – (1) (1) Amortisation for the year (note 7) – 50 21 71 Transfer to assets classified as held for sale – – (160) (160) At 31st December 2024 – 289 5 294 Net book value: At 31st December 2024 1,294 150 – 1,444 Goodwill HK$M Computer Software HK$M Others HK$M Total HK$M Cost: At 1st January 2023 – 321 205 526 Translation differences (78) – – (78) Acquisition of subsidiary companies 1,419 8 – 1,427 Additions – 64 – 64 At 31st December 2023 1,341 393 205 1,939 Accumulated amortisation: At 1st January 2023 – 195 123 318 Amortisation for the year (note 7) – 44 22 66 At 31st December 2023 – 239 145 384 Net book value: At 31st December 2023 1,341 154 60 1,555 Amortisation of HK$71 million (2023: HK$66 million) is included in cost of sales and administrative expenses in the consolidated statement of profit or loss. Impairment test of goodwill The recoverable amount of CGU in Taikoo Li Chengdu in the Chinese Mainland is determined by using the calculation of the fair value less cost of disposal. It mainly represents the fair value of investment properties of Taikoo Li Chengdu by reference to the valuation performed by independent valuers at each reporting date, less cost of disposals estimated by management based on the Group’s experience with disposal of assets and on industry benchmarks. The results of the impairment test using these inputs show that the recoverable amount exceeds the carrying amount of the CGU. The Group therefore concluded that no impairment was required to such goodwill at 31st December 2024 and 2023. The main valuation inputs used were effective market rents per month ranging from approximately HK$10 to HK$300 (2023: HK$10 to HK$200) per square feet and capitalisation rates ranging from 5.50% to 6.50% (2023: 5.75% to 6.50%) determined by an independent valuer at 31st December 2024 and the cost of disposal estimated by the Group’s management. Reasonably possible changes in the key assumptions would not result in an impairment.