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Goodwill (Tables)
12 Months Ended
Dec. 31, 2017
Goodwill [Abstract]  
Summary of goodwill

 

 

 

2017

 

 

2016

 

 

US$m

 

US$m

 

Net book value

 

 

 

 

 

 

At 1 January

 

951

 

 

892

 

Adjustment on currency translation

 

86

 

 

59

 

At 31 December

 

1,037

 

 

951

 

– cost

 

17,942

 

 

17,144

 

– accumulated impairment

 

(16,905

)

 

(16,193

)

 

 

 

 

 

 

 

At 1 January

 

 

 

 

 

 

– cost

 

17,144

 

 

17,120

 

– accumulated impairment

 

(16,193

)

 

(16,228

)

 

At 31 December, goodwill has been allocated as follows:

 

 

 

 

 

 

 

 

2017

 

 

2016

 

 

US$m

 

US$m

 

Net book value

 

 

 

 

 

 

Richards Bay Minerals

 

552

 

 

502

 

Pilbara

 

389

 

 

360

 

Dampier Salt

 

96

 

 

89

 

 

 

1,037

 

 

951

 

 

Key assumptions calculation of fair value less costs of disposal

The key assumptions to which the calculation of FVLCD for Richards Bay Minerals is most sensitive and the corresponding decrease in FVLCD are set out below:

 

 

US$ million

5% decrease in the titanium slag price

165

1% increase in the discount rate applied to post-tax cash flows

226

10% strengthening of the South African rand

603