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KINROSSAnnual Report 200968However, in applying the Company’s accounting policy at impairment testing dates, no value is computed or attributed forthe optionality and the going concern value, which are contributors to goodwill at the time that the reporting units wereacquired. Under the Company’s accounting policy these amounts are considered to exist at the corporate level andcannot be attributed to individual reporting units or individual mines. By not attributing any value to the optionality andgoing-concern value at the individual mines, an impairment of acquired goodwill, with all other assumptions includinggold price and reserves remaining constant, is likely to occur at the time of the first impairment test after acquisition.Positive changes in valuation inputs such as the gold price and reserves in the period prior to the impairment test couldmoderate or eliminate any impairment.The timing and extent of future goodwill impairment charges, beyond the first impairment test after an acquisition, isdependant on a number of factors and assumptions that impact the fair value of the reporting unit as previouslydiscussed, such as gold prices. Furthermore, since mines have a finite life and the Company tests them for impairment atthe reporting unit level, the extent to which reserves and resources are depleted and not replaced and the extent to whichexpected additional value is not converted to reserves or resources, a goodwill impairment charge may be recorded. Ifthere are no goodwill impairment charges during the mine life, it is expected that the carrying value of goodwill would bewritten off at the end of the mine life.The application of the Company’s goodwill policy resulted in a substantial goodwill impairment in 2003 relating to anacquisition made by the Company for which goodwill was recorded. In 2008, the application of this policy resulted in animpairment charge of $994.1 million, related to reporting units acquired through the acquisition of Bema GoldCorporation.At December 31, 2009, key estimates include estimates and assumptions for Reserves and Resources, the gold andsilver price and discount rates. The Company used the Reserves and Resources for each reporting unit as disclosed inthe ‘‘Mineral Reserve and Resource Statement’’ at December 31, 2009, a long-term gold price of $891 per ounce ofgold, a long-term silver price of $14.25 per ounce, an 8.5% discount rate applied to Proven and Probable Reserves andMeasured and Indicated Resources and an 11.5% discount rate applied to Inferred Resources.While the Company believes that the approach used to calculate estimated fair value for each reporting unit isappropriate, the Company also recognizes that the timing and future value of additions to proven and probable mineralreserves, as well as the gold price and other assumptions discussed previously, may change significantly from currentexpectations. For 2009, a reduction in the forecasted gold price used to test impairment of 10% would not have resultedin any impairment charge.Carrying Value of Operating Mines, Mineral Rights, Development Properties andOther AssetsKinross reviews and evaluates the carrying value of its operating mines and development properties for impairmentwhenever events or circumstances indicate that the carrying amounts of these assets might not be recoverable. Whenthe carrying amount exceeds the undiscounted cash flow, an impairment loss is measured and recorded. Future cashflows are based on estimated recoverable production as determined from Proven and Probable Reserves and Measured,Indicated and Inferred Resources. Assumptions underlying the cash flow estimates include, but are not limited to,forecasted prices for gold and silver, production levels, and operating, capital and reclamation costs. The fair values ofexploration-stage properties are estimated based primarily on recent transactions involving similar properties adjustedfor any infrastructure that may already be in place. Assumptions underlying future cash flow estimates are subject torisks and uncertainties. Therefore, it is possible that changes in estimates with respect to the Company’s mine planscould occur which may affect the expected recoverability of Kinross’ investments in the carrying value of the assets. Thecomponents of the asset impairment charges are discussed in ‘‘Impairment of Goodwill and Property, Plant andEquipment’’ under the ‘‘Consolidated Financial Results’’ section.Included in the carrying value of property, plant and equipment and mineral properties is Value beyond Proven andProbable Reserves (‘‘VBPP’’) resulting from Kinross’ acquisitions. The concept of VBPP is described in FASB EmergingIssues Task Force (‘‘EITF’’) Issue No. 04-3, ‘‘Mining Assets: Impairment and Business Combinations,’’ and the Emerging