2011 annual report - ALNO

Consolidated financial statements | Accounting policies77EUR 0 thousand) were recognized on intangible assets,property, plant and equipment for the year 2011 (see C.8."Write-downs on intangible assets, property, plant andequipment").As outlined above, the forward-looking assumptions underlyingthe calculations are based on various uncertainestimates. These uncertainties can have a significant effecton the result of the calculations. The effect of differentplanning scenarios on the value in use of the cash generatingunits ALNO AG and CASAWELL is outlined below(referred only to the change in value of the perpetual annuityas value-driving factor).ALNO AG:in '000 EURWACCFree Cash Flow – 2 % – 1 % 0 % 1 % 2 %– 20 % – 11,332 – 16,578 – 20,203 – 22,802 – 24,713– 10 % – 7,729 – 13,691 – 17,827 – 20,808 – 23,0130 % – 4,126 – 10,803 – 15,450 – 18,813 – 21,31410 % – 523 – 7,915 – 13,074 – 16,818 – 19,61420 % 3,080 – 5,027 – 10,697 – 14,824 – 17,914Impairment test for other intangible assets,property, plant and equipmentOther intangible assets, property, plant and equipmentwere scrutinized at the closing date to determine whetherthere were any indications of a possible impairment. Animpairment test in accordance with IAS 36 is performed ifsuch indications are found.Impairment testing involves determining the recoverableamount for each individual asset or, if cash inflows cannotbe allocated to the individual asset, for a cash generatingunit. Cash generating units are defined as being the smallestunits capable of generating cash flows. In the ALNOGroup, these are the individual companies.The recoverable amount is the higher of the fair value ofthe asset or cash generating unit minus costs to sell orvalue in use.An impairment is recognized when the recoverable amountis lower than the carrying amount of the asset or cashgenerating unit. If the reasons for a previously recognizedimpairment loss no longer apply, the impairment loss isreversed provided that the reversal does not cause thecarrying amount to exceed the amortized cost of acquisitionor production.CASAWELL:Reporting of interests in joint venturesin '000 EURWACCFree Cash Flow – 2 % – 1 % 0 % 1 % 2 %– 20 % 89,905 72,297 59,601 50,029 42,566– 10 % 101,261 81,845 67,233 56,493 48,1250 % 112,617 90,673 74,858 62,957 53,68310 % 123,973 99,860 82,495 69,421 59,24220 % 135,329 109,048 90,127 75,884 64,801Interests in joint ventures are included in the consolidatedfinancial statements using the equity method in compliancewith IAS 31.38.Acquisition costs are increased or decreased by the proratedprofit/loss for the year. Disbursements reduce, andcapital increases increase, the carrying amount of the interest.Changes in equity outside profit or loss are likewiserecognized in Group equity on a prorata basis. If thereis any indication of an impairment, an impairment test isperformed in compliance with IAS 36.