Notes to the Consolidated Financial Statements

15. Intangible assets  



€ 000

Goodwill


        Development

costs

Other intangible assets



Total
2012



Total
2011

Acquisition cost, 1 January

89,382 2,487 24,826

116,695

115,518

Capitalised development costs

-

-

-

-

-

Additions

6,562

-

8,058

14,620

1,177

Disposals

-

-

-32

-32

-

Acquisition of subsidiary

-

-

-

-

-

Acquisition cost, 31 December

95,944 2,487 32,852

131,283

116,695

 

 

 

 

 

 

Accumulated depreciation and amortisation, 1 January

-44,839 -2,487 -20,882

-68,208

-41,003

Depreciation

-

-

-1 810

-1 810

-1,845

Amortisation

- - -

-

-25,360

Accumulated depreciation and amortisation, 31 December

-44,839 -2,487 -22,692

-70,018

-68,208

 

 

 

 

 

 

Book value, 1 January

44,543 0 3,944

48,486

74,514

Book value, 31 December

51,105 0 10,160

61,265

48,486

           
The Group carries out annual impairment tests for goodwill and intangible assets with an indefinite useful life, in accordance with the IAS 36 standard.


Impairment testing

The Group carries out quarterly impairment testing of goodwill and intangible assets with an indefinite useful life.

Present values were calculated for a five-year forecast period based on the following assumptions: consolidated net sales and operating profit for 2013 according to budget; after this, annual growth in net sales of 3 per cent and in operating profit of 10 per cent, and a discount rate of 9.4 per cent. Cash flows after the forecast period were estimated by means of cash-flow extrapolation, applying the assumptions given above.

According to a completed sensitivity analysis, the goodwill requires either net sales to remain at the current level with profitability of 5.9 per cent, or a 3.0 per cent growth in net sales with profitability of 3.4 per cent. The management sees no risk of goodwill impairment.