15. INTANGIBLE ASSETS GOODWILL Goodwill which has occurred in connection with the acquisition of an enterprise is distributed at the date of acquisition to the cash-generating units which are expected to obtain economic benefits from the business combination. Goodwill is tested for impairment at least once a year or more often if indications of impairment exist. The annual impairment test is carried out on 30 April. The recoverable amount is calculated on the basis of calculations of the value in use. The most material uncertainty in this context is related to the determination of the discount rates and growth rates as well as the expected changes in selling prices and production costs in the budget and terminal periods. The discount rates determined reflect market assessments of the time value of money, expressed through a risk-free interest rate and the specific risks associated with the individual cash-generating units. Estimated changes in selling prices and production costs in the budget and terminal periods are based on historical experience and expectations for future market changes. The calculation of the recoverable amount is based on a discount rate of 7%.
Rights which have an indefinable useful life and therefore cannot be amortised are recognised as at 30 April 2013 by 5,718k (2012: DKK 5,705k). The recoverable amount is calculated on the basis of calculations of the value in use. The most material uncertainty in this context is related to the determination of the discount rates and growth rates as well as the expected changes in selling prices and production costs in the budget and terminal periods. The discount rates determined reflect market assessments of the time value of money, expressed through a risk-free interest rate and the specific risks associated with the individual cash-generating units. Estimated changes in selling prices and production costs in the budget and terminal periods are based on historical experience and expectations for future market changes. The calculation of the recoverable amount is based on a discount rate of 15%. No amortisation of rights has been made as at 30 April 2013. DEVELOPMENT PROJECTS AND SOFTWARE Development projects and software are considered to have definable useful lives over which the assets are amortised; see the description of accounting policies in note 1.
No amortisation of goodwill has been made as at 30 April 2013. RIGHTS (BRANDS)
Annual report 2012/13
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