Notes to the Consolidated Financial Statements

15. Intangible assets  



€ 000

Goodwill


        Development

costs

Other intangible assets

Total

2014



Total
2013

Acquisition cost,

1 January

95,944 2,487 33,676 132,107

131,283

Capitalised development costs

-

- - -

-

Additions

-

- 752 752

824

Disposals

- -

-358

-358

-

Acquisition cost,

31 December

95,944 2,487 34,070 132,501

132,107

 

 

 

 

 

 

Accumulated depreciation and amortisation, 1 January

-51,394 -2,487 -24,899 -78,780

-70,018

Depreciation

 - - -1,412 -1,412

-1,762

Amortisation

- - - - -7,000

Accumulated depreciation and amortisation,

31 December

-51,394 -2,487 -26,311 -80,192

-78,780

 

 

 

 

 

 

Book value,

1 January

44,550 0 8,777 53,327

61,265

Book value,

31 December

44,550 0 7,759 52,309

 53,327

           

Impairment testing

The Group carries out quarterly impairment testing on goodwill and intangible assets with an indefinite useful life. The tables below shows the distribution of goodwill and values subject to testing at the end of the reporting period:

€ 000 Specified intangible
assets

 Amortisations during the

reporting period

Goodwill  Other items Total value subject to testing

Digia,

domestic operations

824 490 37,987 5,549

44,360

 

€ 000 Specified intangible
assets

Amortisations

during the reporting period

 Goodwill  Other items Total value subject to testing
Digia, Qt business 6,210 672 6,562 1,747 14,520

 

€ 000 Specified intangible
assets

Amortisations

during the reporting period

Goodwill Other items  Total value subject to testing
Digia Group total          7,034 1,162 44,550 7,295 58,879

 

 

 

Present values for domestic operations were calculated for the five-year forecast period based on the following assumptions: Net sales and operating profit for 2015 according to budget; in the five-year forecast period, annual growth in net sales of 3.0 per cent and 2.5 per cent thereafter, operating profit growth of 8.1 per cent, and a pre-tax discount rate of 8.5 per cent.

Present values for the Qt business were calculated for the five-year forecast period based on the following assumptions: Net sales and operating profit for 2015 according to budget; in the five-year forecast period, annual growth in net sales of 6.5 per cent and 5.5 per cent thereafter, operating profit growth of 4.5 per cent, and a pre-tax discount rate of 8.5 per cent.

Post-forecast-period cash flows for both the tested units were extrapolated using the same assumptions as for the forecast period.

According to a sensitivity analysis, the goodwill related to domestic operations requires either net sales to remain at the current level with profitability at 4.4 per cent, or a 3.0 per cent growth in net sales with profitability at 2.4 per cent.

According to a completed sensitivity analysis, the goodwill of the Qt business requires either net sales to remain at the current level with profitability at 3.5 per cent, or a 4.5 per cent growth in net sales with profitability at 0.2 per cent.