page 66 Notes to the financial statements (cont’d) For the year ended 30 June 2012 on the impaired asset continues to be recognised. When  a subsequent event (eg. a repayment by a debtor) causes  the amount of impairment loss to decrease, the decrease in  impairment loss is reversed through profit or loss. at which impairment is tested reflects the lowest level at  which goodwill is monitored for internal reporting purposes.  Goodwill acquired in a business combination is allocated  to groups of CGUs that are expected to benefit from the  synergies of the combination. Impairment losses are recognised in profit or loss. Impairment  losses recognised in respect of CGUs are allocated first to  reduce the carrying amount of any goodwill allocated to the  units, and then to reduce the carrying amounts of the other  assets in the unit (group of units) on a  pro rata  basis. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are  recognised by reclassifying the losses accumulated in the  investment revaluation reserve, to profit or loss. The cumulative  loss that is reclassified from equity to profit or loss is the  difference between the acquisition cost, net of any principal  repayment and amortisation, and the current fair value, less  any impairment loss previously recognised in profit or loss. An impairment loss in respect of goodwill is not reversed. In  respect of other assets, impairment losses recognised in prior  periods are assessed at each reporting date for any indications  that the loss has decreased or no longer exists. An impairment  loss is reversed if there has been a change in the estimates  used to determine the recoverable amount. An impairment  loss is reversed only to the extent that the asset’s carrying  amount does not exceed the carrying amount that would have  been determined, net of depreciation or amortisation, if no  impairment loss had been recognised. Changes in impairment provisions attributable to application  of the effective interest method are reflected as a component  of interest income. If, in a subsequent period, the fair value of  an impaired available-for-sale debt security increases and the  increase can be related objectively to an event occurring after  the impairment loss was recognised in profit or loss, then the  impairment loss is reversed, with the amount of the reversal  recognised in profit or loss. However, any subsequent recovery  in the fair value of an impaired available-for-sale equity security  is recognised in other comprehensive income. (ii) Non-financial assets (i)  Employee benefits Goodwill that forms part of the carrying amount of an  investment in an associate is not recognised separately, and  therefore is not tested for impairment separately. Instead, the  entire amount of the investment in an associate is tested for  impairment as a single asset when there is objective evidence  that the investment in an associate may be impaired. The carrying amounts of the Group’s non-financial assets,  other than deferred tax assets, are reviewed at each  reporting date to determine whether there is any indication  of impairment. If any such indication exists, then the asset’s  recoverable amount is estimated. For goodwill, and intangible  assets that have indefinite useful lives or that are not yet  available for use, the recoverable amount is estimated each  year at the same time. An impairment loss is recognised if the carrying amount of  an asset or its related cash-generating unit (CGU) exceeds its  estimated recoverable amount. The recoverable amount of an asset or cash-generating unit  is the greater of its value in use and its fair value less costs  to sell. In assessing value in use, the estimated future cash  flows are discounted to their present value using a pre-tax  discount rate that reflects current market assessments of the  time value of money and the risks specific to the asset. For the  purpose of impairment testing, assets that cannot be tested  individually are grouped together into the smallest group of  assets that generates cash inflows from continuing use that  are largely independent of the cash inflows from continuing  use of other assets or groups of assets (the cash-generating  unit “CGU”). Subject to an operating segment ceiling test, for  the purposes of goodwill impairment testing, CGUs to which  goodwill has been allocated are aggregated so that the level  A provision for employee benefits in the form of an incentive  plan is recognised when there is no realistic alternative but to  settle the liability, and at least one of the following conditions  is met: (ii) Short-term incentive plans (i) Defined contribution plans A defined contribution plan is a post-employment benefit plan  under which an entity pays fixed contributions into a separate  entity and will have no legal or constructive obligation to pay  further amounts. Obligations for contributions to defined  contribution plans are recognised in profit or loss in the  periods during which services are rendered by employees.  Prepaid contributions are recognised as an asset to the  extent that a cash refund or a reduction in future payments is  available. •  there are formal terms in the plan for determining the  amount of the benefit; •  the amounts to be paid are determined before the time of  completion of the financial report; or