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INDEX INDEXNotesNotes12. Intangible assets – continuedExpected future cash flows are based on the budget for 2012 approved by the management, the outlook for 2013-2014 and a terminal value. The discountrate used to calculate the recoverable amount of all cash-generating units was 8-10% before tax in 2010 and 2011 and reflects the risk-free interestrate plus specific risks weighted in relation to the equity interest. No growth factor is recognised in the terminal period.The goodwill amount as at 31 December 2011 concerns the Dantherm Air Handling group. The impairment tests carried out in respect of the DanthermAir Handling group did not give rise to any changed assessment of the carrying amount.Completed development projectsCompleted development projects as at 31 December 2011 primarily comprise products developed within Domestic ventilation, Defence and Telecom(products for network operators).Development costs comprise salaries and other costs which are attributable to the company's development activities. Upon completion of the developmentwork, development projects are amortised according to the straight-line method over their estimated useful lives. Significant deviations betweenthe expected and realised sale of the developed products result in an assessment of the need for impairment.Development projects in progressDevelopment projects in progress as at 31 December 2011 primarily comprise products within Defence, Dehumidification, Domestic ventilation andTelecom (products for network operators).An impairment test of development projects in progress was made at the end of the financial year. The need for impairment is assessed on the basis ofthe expected future net cash flows which are estimated on the basis of the business plans and budgets prepared for the most important developmentprojects. The future expectations are based on historical experience from similar products, knowledge of customer interest and concrete order placementsin connection with customised products, which constitute a significant part of the development activities.The assessment of the impairment need at the end of 2011 did not give rise to impairment.13. Property, plant and equipmentOther plant,fixtures PrepaymentsLeasehold and fittings, and assetsLand and improve- Plant and tools and underDKK ‘000 buildings ments machinery equipment construction TotalCost as at 1 January 2010 354,292 13,758 208,146 21,418 311 597,925Disposal in relation to discontinued operation -188,754 -5,293 -78,108 1,803 -311 -270,663Foreign currency translation adjustment 1,467 621 1,621 789 0 4,498Additions 0 84 271 578 0 933Disposals -6,881 0 -1,020 -2,638 0 -10,539Cost as at 31 December 2010 160,124 9,170 130,910 21,950 0 322,154Depreciation and impairment losses as at 1 January 2010 97,577 8,233 137,122 11,286 0 254,218Disposal in relation to discontinued operation -48,320 -2,546 -51,276 8,135 0 -94,007Foreign currency translation adjustment 827 422 1,208 652 0 3,109Depreciation 5,585 1,685 8,817 1,837 0 17,924Depreciation and impairment losses in respect of disposal -3,169 0 -937 -2,404 0 -6,510Depreciation and impairment lossesas at 31 December 2010 52,500 7,794 94,934 19,506 0 174,734Carrying amount as at 31 December 2010 107,624 1,376 35,976 2,444 0 147,420Of which assets held under finance leases 101,266 0 23,059 0 0 124,325Cost as at 1 January 2011 160,124 9,170 130,910 21,950 0 322,154Foreign currency translation adjustment 54 461 714 182 0 1,411Reclassification 0 0 0 0 0 -221Additions 101 161 1,321 916 0 2,499Disposals -23 -1,590 -751 -1,378 0 -3,521Cost as at 31 December 2011 160,256 8,202 132,194 21,670 0 322,322Depreciations and impairment losses as at 1 January 2011 52,500 7,794 94,934 19,506 0 174,734Foreign currency translation adjustment 38 446 547 154 1,185Reclassification 0 0 0 0 0 -221Depreciation 5,128 922 8,245 1,195 0 15,490Depreciation and impairment losses in respect of disposal -23 -1,590 -751 -1,198 0 -3,341Depreciation and impairment lossesas at 31 December 2011 57,643 7,572 102,975 19,657 0 187,847Carrying amount as at 31 December 2011 102,613 630 29,219 2,013 0 134,475Of which assets held under finance leases 100,356 0 13,904 0 0 114,260To be depreciated over 15-30 years 5 years 5-8 years 3-7 years - -Selling price of disposed assets 0 0 0 346 0 346Carrying amount 0 5 0 179 0 184Gain/loss on sale 0 -5 0 167 0 16266 Dantherm Annual Report 2011 Annual Report 2011 Dantherm 67