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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
f) Goodwill Capitalized goodwill is not amortized. It is tested for impairment on an annual basis or whenever there are indications of impairment. Impairment testing is based on the underlying cash-generating unit (CGU) or group of cash-generating units. If the recoverable amount of a CGU has fallen below its carrying amount, impairment losses are recognized. The recoverable amount of a CGU is the higher of its fair value less costs of disposal and its value in use. Impairment testing is generally based on value in use. Fair value less costs of disposal is only calculated if the value in use of a CGU falls below its carrying value and it is possible to make a reliable estimate. Reversals of impairment losses are not permitted. As soon as goodwill is impaired in full, it is treated as a disposal in the consoli- dated statement of changes in non-current assets. g) Other intangible assets Intangible assets that have been purchased are carried at cost and amortized using the straight-line method over their useful life, provided they have a definite useful life. Straight-line amortization is based on useful lives of between three and 25 years. Intangible assets with indefinite useful lives are recognized at cost and subjected to impairment testing at least once a year or whenever there are indications of impairment. If the carrying amount is above the recoverable amount, impairment losses are recognized. If the reasons for recognizing impairment losses cease to apply, impairment losses are reversed. The reversal recognized in profit or loss is limited to the lower of the recoverable amount and the amortized carrying amount that would have arisen had no impairment loss been recognized in the past. When reporting internally generated intangible assets, a distinction is made between research costs and development costs. Research costs are recognized as expenses in the income statement as incurred, while development costs for future products or technologies are capitalized, provided they comply on a cumulative basis with the relevant criteria specified in IAS 38. If they do not meet the requirements for capitalization, costs are recognized in profit or loss for the period in which they are incurred. 58