14. Intangible assets

Notes to the Consolidated Financial Statements

14. Intangible assets  



€ 000

Goodwill


        Development

costs

Other

intangible

assets

Total

2015



Total
2014

Acquisition cost, 1 January

95,944 2,487 34,070 132,501 132,107

Additions

- - 140 140 752

Disposals

- - -33 -33 -358

Acquisition cost, 31 December

95,944 2,487 34,177 132,608 132,501

 

 

 

 

   

Accumulated depreciation and amortisation,

1 January

-51,394 -2,487 -26,311 -80,192 -78,780

Depreciation

- - -1,380 -1,380 -1,412

Accumulated depreciation and amortisation,

31 December

-51,394 -2,487 -27,691 -81,572 -80,192

 

 

 

 

   

Book value, 1 January

44,550 0 7,759 52,309 53,327

Book value, 31 December

44,550 0 6,486 51,036 52,309
           

Impairment testing

The Group carries out impairment testing of goodwill and intangible assets with an indefinite useful life. The table 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 business

334 490 37,987 5,800 44,121
 
€ 000

Specified

intangible

assets

Amortisations

during the

reporting period

 Goodwill

 Other items

Total value

subject to

testing

Digia, Qt business 5,647 564 6,562 1,959 14,168
 
€ 000

Specified

intangible

assets

Amortisations

during the

reporting period

Goodwill

Other items

 Total value

subject to

testing

Digia Group, total          5,981 1,053 44,550 7,759 58,289
 

Present values for domestic operations were calculated for the five-year forecast period based on the following assumptions: Net sales and operating profit for 2016 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 8.0 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 2016 according to budget; in the five-year forecast period, annual growth in net sales of 10.0 per cent and 5.5 per cent thereafter, operating profit growth of 3.0 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 2.8 per cent, or a 3.0 per cent growth in net sales with profitability at 2.5 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 5.0 per cent, or a 5.5 per cent growth in net sales with profitability at 0.0 per cent.