Notes to the Consolidated Financial Statements

15. Intangible assets  



€ 000

Goodwill


        Development

costs

Other intangible assets



Total
2013



Total
2012

Acquisition cost, 1 January

95,944 2,487 32,852

131,283

116,695

Capitalised development costs

-

- -

-

-

Additions

-

- 824

824

14,620

Disposals

- -

-

-

-32

Acquisition cost, 31 December

95,944 2,487 33,676

132,107

131,283

 

 

 

 

 

 

Accumulated depreciation and amortisation, 1 January

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

-70,018

-68,208

Depreciation

 - - -1,762

-1,762

-1,810

Amortisation

-6,555 - -445 -7,000

-

Accumulated depreciation and amortisation, 31 December

-51,394 -2,487 -24,899

-78,780

-70,018

 

 

 

 

 

 

Book value, 1 January

51,105  0 10,160

61,265

48,486

Book value, 31 December

44,550 0 8,777

 53,327

61,265

           

Impairment testing

The Group carries out quarterly impairment testing on goodwill and intangible assets with an indefinite useful life. The tables below shows the distribution of goodwill and values subject to testing at the end of the reporting period:


€ 000 Allocated goodwill

 Amortisations during the

reporting period

Goodwill  Other items Total carried value 

Digia,

domestic operations

1,313 656 37,987  6,227

45,528

 

€ 000 Allocated goodwill

Amortisations

during the reporting period

 Goodwill  Other items Total carried value 
Digia, Qt business 6,843 862  6,562 1,367 14,773

 

€ 000 Allocated goodwill

Amortisations

during the reporting period

Goodwill Other items  Total carried value 
Group total          8,157 1,519 44,550 7,594 60,300

 

The Group made a EUR 0.4 million writedown related to itemised intangible assets allocated to the fourth quarter. After this, it was found necessary to make a EUR 6.6 million writedown related to the goodwill of domestic operations. The writedown derives from a change in the company’s estimate of the long-term profit forecast for its domestic business operations, on which evaluations must be based according to standards.

Present values for domestic operations were calculated for the five-year forecast period based on the following assumptions: consolidated net sales and operating profit for 2014 according to budget; after this, annual growth in net sales of 0.8 per cent and in operating profit of 3.6 per cent, and a pre-tax discount rate of 8.9 per cent.

Present values for the Qt business were calculated for the five-year forecast period based on the following assumptions: consolidated net sales and operating profit for 2014 according to budget; after this, annual growth in net sales of 6.5 per cent and in operating profit of 5.3 per cent, and a pre-tax discount rate of 8.9 per cent.

Post-forecast-period cash flows for both the tested units were extrapolated using the same assumptions as for the forecast period.

According to a completed sensitivity analysis, the goodwill of the Qt business requires either net sales to remain at the current level with profitability of 3.9 per cent, or a 5.0 per cent growth in net sales with profitability of 1.2 per cent.