GENERAL MEETING DRAFT - Bankier.pl

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>> Consolidated Financial Statements
Part B – Consolidated Balance Sheet - Assets
As it would be too difficult to determine the carry value of the other CGU based on book values,
management factors, determined by the Capital Management unit of the Planning, Finance and
Administration Department, had to be used instead to make the proper sub-division. In each case, the
intangible assets were attributed to the CGU in accordance with the accounting information available.
The following are the book values of the CGU at 31 December 2009, calculated as described above, and
the shares of goodwill and other intangible assets allocated to each of these; the values refer to the
situation before impairment testing.
Cash Generating Unit CGU
Value at
12.31.2009
of which
goodwill
(Group
share)
(� million)
of which
other
intangible
assets(*)
Retail 10,739 5,974 201
Private Banking 655 264 48
Asset Management 1,859 1,719
Corporate & Investment Banking (CIB) 23,745 6,703 292
Central Eastern Europe (CEE) 15,128 4,289 220
of which:
Ukraine 943 457 19
Kazakhstan 1,146 762 36
Poland’s Markets 6,820 1,502
Group parent and other companies 4,147 40 2,033
Total 63,093 20,491 2,794
(*) Stated amounts are net of taxes.
Estimation of financial flows in determining utility value of CGU
As stated, in accordance with the provisions of IAS36, the impairment test of intangibles having an
indefinite term must be performed at least once a year and whenever there is objective evidence of
events that may have reduced its value. The accounting standards require that the impairment test
compares the book value of each CGU with its recoverable value. Where the latter is less than the book
value, a value adjustment must be recorded in the financial statements. The recoverable amount of a
CGU is the greater of its fair value (net of selling costs) and its relative utility value.
The recoverable amount of the Group’s CGU is represented by the utility value, determined on the basis
of future financial flows generated by each CGU to which the goodwill has been allocated. These flows
are estimated on the basis of:
- the 2010 budget approved by the Board of Directors on 9 February 2010;
- growth estimates prepared in accordance with the latest medium- to long-term Group Plan
previously approved by the Board of Directors.
In formulating its forecasts, management has also taken into account the recent macroeconomic and
market environment.
The projections of future profits have been extended until 2019 (confirmed forecast) with the aim of
obtaining an assessment of the Group's income capacity and the capacity to create value over time,
regardless of the current macroeconomic situation. These projections were developed for all the CGU and
for the individual countries in the region of Central and Eastern Europe.
The cash flow expected for 2019 represents the basis for calculating Terminal Value, which indicates
the capacity of the CGU to generate future financial flows beyond that year. According to the most
widely used methodology, Terminal Value is calculated as the value of a perpetuity valuated on the
basis of a standardized, economically viable flow that is consistent with the long-term growth rate, socalled
“g”, which may be fixed or digressive, as required by IAS/IFRS accounting principles.