Annual Report 2008 English [PDF, 2.69 MB] - Tessenderlo Group

Tessenderlo Group
ACQUISITION COST
At 1 January 2007 69.5
. acquisitions through business combinations 0.2
. sales and disposals -
. transfers -
. translation differences -5.1
At 31 December 2007 64.6
IMPAIRMENT LOSSES
At 1 January 2007 -29.4
. acquisitions through business combinations -
. sales and disposals -
. transfers -
. translation differences 2.0
At 31 December 2007 -27.4
CARRYING AMOUNTS
As per 1 January 2007 40.1
As per 31 December 2007 37.2
During the fourth quarter of 2008, the Group completed its annual impairment test for goodwill and
concluded, based on the assumptions below, that no impairment charge was deemed necessary.
The Group cannot foresee whether an event that triggers impairment will occur, when it will occur or
how it will affect the asset values reported. The Group believes that all of its estimates are reasonable.
They are consistent with the internal reporting and reflect management’s best estimates.
135
Goodwill only accounts for approximately 2.1 % of the Group’s total assets as at 31 December 2008
(2007: 2.2 %). The impairment testing on goodwill, relies on a number of critical judgements, estimates
and assumptions.
Goodwill has been tested for impairment on company level or at the most relevant level based on valuein-use
calculations. The key judgements, estimates and assumptions used in these calculations are as
follows:
- The cash flow projection of the first year is based on the current year financial budget (2009).
- For the next four years (2010-2013), cash flow projections used are based on a long term plan for
the coming 5 years.
- In order to calculate the terminal value, the data of the fifth year are extrapolated by using
simplified assumptions such as constant quantities sold, combined with constant costs.
- Projections are made in the functional currency of the company and are discounted at the company
level Weighted Average Cost of Capital.
Although the Group believes that its judgements, assumptions and estimates are appropriate, actual
results may differ from these estimates under different assumptions or conditions.