Richemont is one of the world's leading luxury - Alle jaarverslagen

8. Intangible assets continuedImpairment testing for intangible assets with indefinite lives including goodwillGoodwill is the only intangible with an indefinite life.For the purposes of impairment testing, goodwill is allocated to the Group’s Maisons which represent the lowest level within the Group atwhich goodwill is monitored.An operating segment level summary of goodwill is presented below.2009 2008€ m € mJewellery Maisons 36 –Specialist Watchmakers 106 33Other Businesses – retail 13 11Total 155 44The recoverable amount of goodwill is determined based on the value-in-use of the Maison to which the goodwill is allocated. The value-in-useis determined by discounting the future cash flows generated from the continuing use of the Maison.Jewellery Maisons/Specialist WatchmakersThe goodwill of € 93 million recognised during the year arises from the Group’s acquisition of Roger Dubuis. The value-in-use was determinedby discounting the future cash flows generated from the continuing operations of the jewellery Maisons and specialist watchmakers segments,applying the following key assumptions:• pre-tax cash flows are based on an estimated five-year business plan. Management believes that this forecast period is justified due to therelative insignificance of the amount; and• a pre-tax discount rate of 10.6 per cent.The recoverable amount significantly exceeds the carrying amount. Management considers that it is not reasonably possible for future cashflows to change so significantly to eliminate the excess.Other Businesses – retailThe recoverable amount of € 13 million (2008: € 11 million) for a Hong Kong-based clothing and accessories retailer was determined bydiscounting the future cash flows generated from the continuing operations, applying the following key assumptions:• pre-tax cash flows are based on the approved five-year business plan; and• a pre-tax discount rate of 10.6 per cent.The recoverable amount significantly exceeds the carrying amount. Management considers that it is not reasonably possible for future cashflows to change so significantly to eliminate the excess.The values assigned to the key assumptions represent management’s assessment of future trends in the luxury goods businesses and are basedon both external and internal sources.In all cases, the carrying amount of the goodwill was determined to be lower than its recoverable amount; therefore no impairment losseswere recognised.Richemont Annual Report and Accounts 2009 75Consolidated financial statements