Group 20: Intangible assets

Intangible assets include mainly trademarks (Atag, Etna and Pelgrim), deferred development costs, and software.

Goodwill in the amount of TEUR 62,130 and fair value of trademarks Atag, Etna and Pelgrim in the amount of TEUR 61,964 were established in 2008 at the acquisition of the company ATAG Europe BV. In addition, goodwill was established in 2008 in the amount of TEUR 1,617 at the acquisition of the majority interest in PUBLICUS, d.o.o. Goodwill in the amount of TEUR 2,030 was established in 2007 at the acquisition of the majority interest in Gorenje Surovina, d.d.. Goodwill in the amount of TEUR 2,875 was established in 2005 at the acquisition of Mora Moravia, s r. o. in the Czech Republic and Gorenje Studio, d.o.o. in Serbia.

Impairment testing of goodwill and trademarks

Impairment testing of goodwill and trademarks Atag, Etna and Pelgrim arising from the acquisition of ATAG Europe BV was carried out. The calculations are based on cash flow projections for ATAG, which have been prepared on the basis of the adopted business plan for 2012 and strategic business plan for the period from 2013 to 2015. The main underlying assumptions used to calculate the value in use are: the revenue growth rate of 3.0% (2010: 3.0%) and the discount rate of 13.31% (2010: 12.31%).
The recoverable value of the cash-generating unit exceeds its carrying amount, including that of goodwill and trademarks Atag, Etna and Pelgrim. Therefore there was no need for impairment.

Impairment testing of goodwill arising from the acquisition of Publicus, d.o.o. was carried out. The calculations are based on cash flow projections for Publicus, d.o.o., which have been prepared on the basis of the adopted business plan for 2012 and strategic business plan for the period from 2013 to 2015. The main underlying assumptions used to calculate the value in use are: the revenue growth rate of 3.5% (2010: 3.0%)  and the discount rate of 10.5% (2010: 9.5%).
The recoverable value of the cash-generating unit was determined to be not significantly lower from its carrying amount, including that of goodwill. Therefore there was no need for impairment of goodwill.

Impairment testing of goodwill arising from the acquisition of Mora Moravia, s r.o. was carried out. The calculations are based on cash flow projections for Mora Moravia, s r.o., which have been prepared on the basis of the adopted business plan for 2012 and strategic business plan for the period from 2013 to 2015. The main underlying assumptions used to calculate the value in use are: the revenue growth rate of 4.5% (2010: 2.0%) and the discount rate of 10.5% (2010: 9.5%).
The recoverable value of the cash-generating unit exceeds its carrying amount, including that of goodwill. Therefore there was no need for impairment of goodwill.

Impairment testing of goodwill arising from the acquisition of Gorenje Studio, d.o.o. was carried out. The calculations are based on cash flow projections for Gorenje Studio, d.o.o., which have been prepared on the basis of the adopted business plan for 2012 and strategic business plan for the period from 2013 to 2015. The main underlying assumptions used to calculate the value in use are: the revenue growth rate of 0.0% (2010: 2.0%) and the discount rate of 10.5% (2010: 9.5%).
The recoverable value of the cash-generating unit was determined to be higher than its carrying amount, including that of goodwill. Therefore there was no need for impairment of goodwill.

Impairment testing of goodwill arising from the acquisition of Gorenje Surovina, d.o.o. was carried out. The calculations are based on cash flow projections for Gorenje Surovina, d.o.o., which have been prepared on the basis of the adopted business plan for 2012 and strategic business plan for the period from 2013 to 2015. The main underlying assumptions used to calculate the value in use are: the revenue growth rate of 5.0% (2010: 3.0%) and the discount rate of 10.5% (2010: 9.5%).
The recoverable value of the cash-generating unit was determined to be higher than its carrying amount, including that of goodwill. Therefore there was no need for impairment of goodwill.

Goodwill in the amount of TEUR 705 referring to the company IG AP, d.o.o. was written down and charged against the profit for the period.