26. Goodwill

Goodwill is measured at initial value (determined in accordance with the accounting policy presented in Note 7) less accumulated impairment losses. Goodwill is not amortised but is tested for impairment.  

As at the acquisition date, the acquired goodwill is allocated to each of the cash-generating units that may benefit from the synergies of the merger. Each centre, or set of centres, to which goodwill has been allocated corresponds to the lowest level in  TAURON Group at which goodwill is monitored for internal management purposes and is no higher than one operating segment of TAURON Group.

Goodwill is tested for impairment annually and as at each balance sheet date for which relevant indications occur. The impairment test in respect of goodwill is carried out in accordance with the accounting policies presented in Note 14.

As a result of the settlement of the acquisition of control of Energetyka Cieszyńska Sp. z .o.o., the Group recognised goodwill in the Generation segment in the amount of PLN 18 million as at the date of taking control of the company. As a result of the impairment tests performed as at 31 December 2022, the Group has written down the recognised goodwill in the full amount, as further described in Note 14 of consolidated financial statements.