Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 442

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 442
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 available macroeconomic and market specific information, and considering the impact of evidence identified through other audit procedures, as appropriate.

  Brookfield Business Partners      F-3  

• With the assistance of fair value specialists, evaluated the reasonableness of management’s discount rate by testing the source information underlying the determination of the discount rate, benchmarking the assumptions against publicly available information and developing a range of independent estimates based on market data and comparing those to the discount rate selected by management, as appropriate.

Goodwill Impairment - Refer to Notes 2(n) and 14 to the financial statements

Critical Audit Matter Description

The Partnership’s evaluation of goodwill impairment at its healthcare services operation cash generating unit (“ CGU”) involves assessing if the carrying amount of the CGU, including the allocated goodwill, exceeds its recoverable amount determined using a value in use discounted cash flow model. Determining the recoverable amount requires management to make significant estimates and assumptions related to the revenue growth rates, EBITDA margin projections, the perpetuity growth rate and discount rate. As at December 31, 2024, the carrying amount of the healthcare services CGU exceeded its recoverable amount, resulting in an impairment charge of $ 661 nil

We identified goodwill impairment as a critical audit matter because of the significant estimates and assumptions made by management to estimate the recoverable amount of the CGU, specifically revenue growth rates, EBITDA margin projections, the perpetuity growth rate and discount rate. This required a high degree of auditor judgment and an increased extent of audit effort, including the involvement of fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the estimates and assumptions used to determine the recoverable amount of the CGU included the following, among others:

• Evaluated the effectiveness of controls over the determination of revenue growth rates, EBITDA margin projections, the perpetuity growth rate and the discount rate made by management.

•Evaluated the reasonableness of management’s revenue growth rates and EBITDA margin projections by:

◦ Evaluating management’s ability to accurately forecast by comparing actual results to historical forecasts.

◦ Assessing forecasts by giving consideration to the Board approved business plan, available macroeconomic and market specific information, and considering the impact of evidence identified through other audit procedures, as appropriate.

• With the assistance of fair value specialists, evaluated the reasonableness of the perpetuity growth rate against actual results, applicable market data, and industry and macroeconomic data, as appropriate.

• With the