Annual Report 2010 - CMVM

Notes to the Consolidated Financial Statements as at 31 December 2010The goodwill relative to the associated companies is an integral part of the values of the corresponding investments and is disclosed in Note 22.The values of goodwill are tested annually for impairment or whenever there are indications that they may be impaired.The recoverable amount of the cash-generating units to which goodwill is allocated is determined based on the calculation of its use value, which uses cash flow forecastsbased on the latest financial forecasts approved by the respective Boards of Directors over a period of five years, discounted by the discount rates shown in the table below,which were calculated based on the weighted average cost of capital (WACC), adjusted for risks, specific to the market into which each unit falls. Cash flows beyond this fiveyearperiod were forecast using the rates specified in the same table. These rates do not exceed the average long-term growth for the markets in which those cash-generatingunits are allocated.The Boards of Directors believe that any reasonably possible change in the key assumptions on which the recoverable amount is based would not cause the book value ofthese cash-generating units to exceed its recoverable amount.The main assumptions considered in determining the value in use of goodwill are as follows:2010 2009SubsidiaryBook valueof the goodwillDiscount ratePerpetuitygrowth rateBook valueof the goodwillDiscount ratePerpetuitygrowth rateLimited Liability Company Cement 23,761 15.0% 1.5% 23,761 15.0% 1.5%EPOS - Empresa Portuguesa de Obras Subterrâneas, S.A. 12,107 9.5% 3.0% 12,107 9.5% 3.0%C+P.A. - Cimento e Produtos Associados, S.A. 7,806 5.0% 1.5% 7,806 5.0% 1.5%Digal - Distribuição e Comércio, S.A. 6,163 8.1% 1.5% 5,986 6.8% 1.5%Karibib Portland Cement (PTY) 5,833 11.5% 1.5% 5,833 11.5% 1.5%Bonaparte - Imóveis Comerciais e Participações, S.A. 1,979 5.5% 1.5% 1,979 5.4% 1.5%Auto Competição Angola, Lda. 212 15.0% 1.5% 197 15.0% 1.5%TDSP - Bela Vista Empreendimentos Imobiliários, SPE, Ltda. 46 10.0% 1.5% 41 10.0% 1.5%Petrosório - Combustíveis e Lubrificantes, Lda. - - - 374 6.0% 1.5%57,907 58,08419 - OTHER INTANGIBLE ASSETSDuring the year ended on 31 December 2010, the movements in intangible assets and in their depreciation and accumulated impairment losses were as follows:IndustrialpropertyOtherAdvance payments forintangible assetsTotalGross assets:Balance as at 1 January 2010 14,143 434 6,229 20,806Currency conversion adjustments 255 55 480 790Additions 253 70 1,006 1,329Transfers and write-offs (2,384) 71 (5,728) (8,041)Disposals (1,811) - - (1,811)Balance as at 31 December 2010 10,456 630 1,987 13,073Accumulated depreciation and impairment losses:Balance as at 1 January 2010 10,396 227 - 10,623Currency conversion adjustments 46 50 - 96Transfers and write-offs (7,924) 209 - (7,715)Reinforcements 535 144 - 679Uses (2) - - (2)Balance as at 31 December 2010 3,051 630 - 3,681Net value:As at 31 December 2010 7 405 - 1 987 9 392177