| 23 | Goodwill |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Cost and carrying amount: |
||||||||
|
At January 1 |
182 | — | ||||||
|
Acquisitions through business combination (Note 24(v)&(vi)) |
55 | 182 | ||||||
|
|
|
|
|
|||||
|
At December 31 |
237 | 182 | ||||||
|
|
|
|
|
|||||
Impairment tests for cash-generating units containing goodwill
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
Southern Airlines Group Import and Export Trading Company (“SAIETC”)(Note 24(vi)) |
182 | 182 | ||||||
|
Xiamen Airlines Culture and Media Co., Ltd. (“XACM”) (Note 24(v)) |
55 | — | ||||||
|
|
|
|
|
|||||
|
Total |
237 | 182 | ||||||
|
|
|
|
|
|||||
The recoverable amount of the CGU is determined based on value-in-use calculation. The calculation uses cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using an estimated weighted average growth rate which does not exceed the long-term average growth rates for the business in which the CGU operates.
The cash flows of SAIETC are discounted using a pre-tax discount rate of 13.40% (2016: 13.40%).
The cash flows of XACM are discounted using a pre-tax discount rate of 11.10%.