14. Intangible assets

Notes to the Consolidated Financial Statements

14. Intangible assets  



€ 000

Goodwill


        Development

costs

Other

intangible

assets

Total

2016



Total
2015

Acquisition cost, 1 January

95,944 2,487 34,177 132,608 132,501

Acquisition cost transferred in the demerger

-6,562 - -7,162 -13,724 -

Additions

2,572 - 1,249 3,821 140

Disposals

- - -227 -227 -33

Acquisition cost, 31 December

91,954 2,487 28,037 122,478 132,608

 

 

 

 

   

Accumulated depreciation and amortisation,

1 January

-51,394 -2,487 -27,691 -81,572 -80,192

Depreciation transferred in the demerger

- - 1,510 1,510 -

Depreciation

- - -571 -571 -1,380

Accumulated depreciation and amortisation,

31 December

-51,394 -2,487 -26,751 -80,632 -81,572

 

 

 

 

   

Book value, 1 January

44,550 0 6,486 51,036 52,309

Book value, 31 December

40,559 0 1,286 41,844 51,036
           

Impairment testing

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

€ 000

Specified

intangible

assets

Amortisations

during the

period

Goodwill

Other items

 Total value

subject to

testing

Digia        968 306 40,559 6,060 47,587
 

The goodwill of the businesses acquired in 2016 accounted for EUR 2,572 thousand.

The current values for Digia’s operations were calculated for a five-year forecast period based on the following assumptions:
Net sales and operating profit for 2017 according to budget. In the five-year forecast period, annual growth in net sales of 10.0 per cent and 2.0 per cent thereafter, operating profit growth of 6.0 per cent, and a pre-tax discount rate of 10.6 per cent. Post-forecast-period cash flows were extrapolated using the same assumptions as for the forecast period.

According to a sensitivity analysis, goodwill requires either net sales to remain at the current level with profitability of 5.2 per cent, or a 3.0 per cent growth in net sales with profitability of 3.3 per cent.