Annual Report 2008 Sustainable design & engineering - Grontmij

Notes to the consolidated financial statements
8. Goodwill
In thousands of euros
The movements in the carrying amount are as follows:
Cost 107,522
Accumulated impairment losses -
Balance as at 1 January 2007 107,522
Movements during 2007
Acquisition through business combinations 1,070
Impairment loss -151
919
Cost 108,592
Accumulated impairment losses -151
Balance as at 31 December 2007 108,441
Movements during 2008
Acquisition through business combinations 20,964
Earn out adjustments on prior years’ business combinations 4,323
Currency differences - 3,270
Impairment losses -
22,017
Cost 133,879
Accumulated currency differences -3,270
Accumulated impairment losses -151
Balance as at 31 December 2008 130,458
Goodwill is capitalised in respect of the following entities:
In thousands of euros
31 December 2008 31 December 2007
Grontmij Carl Bro a|s 60,042 59,987
Grontmij Sverige AB 25,120 25,120
Grontmij Group Ltd. 13,894 13,894
Trett Consulting 6,827 -
Roger Preston & Partners 5,921 -
Grontmij BGS Ingenieurgesellschaft mbH 5,393 1,070
Grontmij Kats & Waalwijk Vastgoedmanagement B.V. 3,378 3,378
Whitelaw Turkington 1,661 -
Other (individually less than € 1.5 million) 8,222 4,992
130,458 108,441
The Group annually carries out impairment tests on capitalised goodwill, based on the cash flows of the relating cash generating unit (CGU).
Determination of the realisable value is performed by using estimated future cash flows, based on actual results from operations and a forecast
for five years, including authorised budgets. Cash flows after five years are extrapolated by using a 1% growth rate.
To calculate the present value of the estimated future cash flows, pre-tax discount rates between 9.0% and 12.0% have been applied (2007: 10.5%
and 11.5%). The impairment tests at the reporting date showed that no impairments needed to be recognised.
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GRONTMIJ | ANNUAL REPORT 2008