Chief Executive's ReviewNotes to the accounts
9 Goodwill
| 2009 £m |
2008 £m |
|
|---|---|---|
| Cost | ||
| At 1 April | 82.0 | 67.1 |
| Additions | – | 15.0 |
| Other changes(i) | (2.1) | (0.1) |
| At 31 March | 79.9 | 82.0 |
| Aggregate impairment | ||
| At 1 April | – | – |
| Impairment for the year | – | – |
| At 31 March | – | – |
| Net book amounts at 31 March | 79.9 | 82.0 |
(i) Other changes relate to the reallocation of goodwill as intangible assets, after further review of the assets acquired as part of the acquisition were undertaken in the year and movements in fair value adjustments on prior year acquisitions. The adjustments are not significant and therefore the prior year balance sheet has not been restated.
Impairment review
During the year management has carried out an impairment review for the goodwill carried in the balance sheet.
No impairments were identified as a result of the review. All of the recoverable amounts were based on value in use.
The key assumptions applied in the value in use calculations were:
– cash flow projections are based on board approved budgets for the financial year ending 2010 and three year plan for 2010 to 2012
– long term growth rates of between 2 and 4%
– a pre tax discount rate of 4.02% (2008: 6.34%) which has been applied to each cash-generating unit as they each have a similar risk profile
– there are three cash-generating units which are disclosed in the segmental information note
The Directors are confident that the assumptions used above are reasonable, although it is possible that an impairment would be identified if any of the assumptions were amended significantly.