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Notes to the Financial Statements
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35 13.2 Impairment tests for cash-generating units containing goodwill and trademarks An Impairment Review was carried out at the year end of the Group’s goodwill and trademarks in CasinoClub. The carrying values of the assets were compared with the recoverable amounts, these were determined with the assistance of independent valuers. The recoverable amount was estimated based upon a value in use calculation for the Casino business, based upon management forecasts for the years ending 31 December 2009 and 31 December 2010. A long-term growth rate of 2% was used, to reflect the risk of adverse changes in legislation in the future on potential market growth. A discount rate of 18% was used, based on company specific pre-tax weighted average cost of capital. Having performed appropriate sensitivity analysis on the key assumptions (including reducing the growth rate to nil and increasing the discount rate to 20%), it was concluded that the carrying value of goodwill and trademarks was not impaired. The following units have significant carrying amounts of goodwill: 31 Dec 31 Dec 2008 2007 d000’s c000’s Casino operation: GVC Corporation II B.V. 40,339 40,339 14. RECEIVABLES AND PREPAYMENTS 31 Dec 31 Dec 2008 2007 d000’s c000’s Trade receivables 5,475 3,021 Interest receivables 9 Other receivables 593 540 Loans and receivables 6,077 3,561 Prepayments 290 734 6,367 4,295 Trade receivables include funds held by third party collection agencies as of 31 December 2008 amounting to c5.4 million, which corresponds to the revenue generated over the last 3 weeks of the 12 month period ended 31 December 2008. Prepayments include payments as at 31 December 2008 for goods or services which will be consumed after 1 January 2009. 15. TAX RECLAIMABLE 31 Dec 31 Dec 2008 2007 d000’s c000’s Tax reclaimable 2,611 Tax reclaimable represents a portion of the tax paid by GVC Corporation Limited (a wholly owned company incorporated in Malta) which is refundable by the Maltese tax authorities to Gaming VC Holdings S.A. shortly after the submission of the audited accounts and tax computation for GVC Corporation Limited.