ELIA annuAl Report 2009 — financial Report
4.3. Trade and other receivables
Impairment test for cash-generating units containing goodwill The goodwill generated by the acquisition of Elia Asset SA by Elia System Operator SA in 2002 and the goodwill generated by the acquisition of Elia Engineering SA in 2004 were classified as one cash-generating unit for the impairment test, since the income and expenses were generated by one activity. The impairment test was conducted by independent experts and was based on the following valuation methods: 1. Discounting of future cash flows. 2. Discounting of future dividends. 3. Comparison between previously mentioned impairment methods and those used by some comparable Western European listed companies, such as Red Electrica España, Enagas, Terna, Fluxys, Snam Rete Gas and National Grid. 4. Market valuation based on Elia’s share price. Future cash flows and dividends were discounted on the basis of financial prospects approved by the management for the period 2008-2011 (new regulation mechanism), accompanied by an extrapolation to 2018 based on assumptions included in the strategic plan for 2007-2015 and applying discount rates of between 3.78 % and 5.41%. The independent analyses did not result in accounting an impairment loss on goodwill in 2009.
(in million €) Tax receivables Other amounts receivable
2009
2008
105.3
98.7
0.4
Total
105.7
98.7
Long-term receivables consist of the basic amount of tax receivable (€93.8 million) and the cumulative moratorium interest (€6.6 million for 2009 and €4.9 million for 2008) that the Group could recover in the future. These amounts only relate to the tax audit of 2004 and since the dispute will first come before the court in 2011, they have been qualified as a long-term receivable. A detailed description can be found in Note 3.4. 4.4. Equity accounted investees Investments in associated companies (in million €)
At 1 January Acquisition of subsidiary Share of (loss)/profit At 31 December
2009
2008
10.1
8.1
0.3
0.0
(1.0)
2.0
9.4
10.1
Summary of financial data on equity accounted investees, not corrected for the group’s ownership percentage: 101
(in million €) Name
Assets
Liabilities
Revenues
Profit/(loss)
% interest held
H.G.R.T. S.A.S.
39.3
23.1
6.6
6.3
24.5%
Total
39.3
23.1
6.6
6.3
45.3
8.3
7.1
1.7
24.5%
2.4
1.3
3.4
0.1
33.3%
47.7
9.6
10.5
1.8
2008
2009 H.G.R.T. S.A.S. Coreso Total