measure and monitor the processes and report results ... - Refresco.de

Financial review 2010
Amortization and impairment charge
Amortization and impairment losses are recognized in depreciation, amortization and impairment expense
in the income statement.
Impairment testing for cash­generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the business units of the Group, being
the lowest level within the Group at which goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to each unit are as follows:
EUR’000
2010 2009
Refresco Benelux 93,716 93,716
Refresco France 65,910 65,910
Refresco Germany 39,859 39,859
Refresco Iberia 35,716 35,716
Refresco Poland 13,242 12,796
Refresco UK 10,375 12,022
Refresco Scandinavia 11,314 11,314
The recoverable amounts of the cash­generating units are based on value­in­use calculations.
270,132 271,333
Value­in­use was determined by discounting the future pre­tax cash flows generated from the continuing use
of the unit using a pre­tax discount rate and was based on the following key assumptions:
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Cash flows were projected based on the current operating results and the 3­year business plan. Future cash
flows were extrapolated using a growth rate which is based on the growth expectations of the private label
segment in the total local market. These growth expectations are retrieved from researches from independent
external sources. Management believes that this forecast period was appropriate to the long­term nature of
the business.
A pre­tax discount rate of 10,7% (2009 10,0%) was applied in determining the recoverable amount of the
units. This rate was based on a weighted average cost of capital applicable to the industry.