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Annual Report & Accounts 2015 - NOTES
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8. intanGiBle assets trade- Non- Leased Owned total marks & contractual Software Software software trade Consulting Customer Licence Licence licence Goodwill Name & magazine Relationships total €000's €000's €000's €000's €000's €000's €000's €000's cost at 1 January 2014 827 23,009 23,836 166,167 17,065 4,919 2,379 214,366 additions 306 3,341 3,647 - - - - 3,647 at 1 January 2015 1,133 26,350 27,483 166,167 17,065 4,919 2,379 218,013 additions - 5,003 5,003 - - - - 5,003 at 31 december 2015 1,133 31,353 32,486 166,167 17,065 4,919 2,379 223,016 amortisation and impairment at 1 January 2014 243 19,017 19,260 33,274 1,095 4,919 1,968 60,516 amortisation 232 2,451 2,683 - 216 - 338 3,237 at 1 January 2015 475 21,468 21,943 33,274 1,311 4,919 2,306 63,753 amortisation 390 3,457 3,847 - 190 - 73 4,110 at 31 december 2015 865 24,925 25,790 33,274 1,501 4,919 2,379 67,863 net Book Value at 31 december 2014 658 4,882 5,540 132,893 15,754 - 73 154,260 at 31 december 2015 268 6,428 6,696 132,893 15,564 - - 155,153 Certain intangible assets are deemed to have an indefinite useful life as there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. the carrying amounts of such assets at 31 december 2015 were as follows: 2015 2014 €000's €000's trademarks & trade Names 15,142 15,142 8.1 amortisation the amortisation for the year is recognised in the following line items in the income statement. 2015 2014 €000's €000's Net operating expenses 4,110 3,237 8.2 impairment tests for cash-Generating Units containing Goodwill and trademarks an impairment Review of the Group's goodwill was carried out for the year ended 31 december 2015. the goodwill relates to Betboo, CasinoClub and sportingbet. the carrying values of the assets were compared with the recoverable amounts, the recoverable amount was estimated based upon a value in use calculation, based upon management forecasts for the years ending 31 december 2016 and up to 31 december 2020. the assumptions detailed below have been determined based on past experience in this market which the Group's management believes is the best available input for forecasting this market. Betboo significant growth is expected in the short-term reducing to 20% annual growth by 2017, a long-term growth rate of 2% was used from 2019 to reflect the likely competitive pressures. a discount rate of 35% was used, based on the internal rate of return of the Betboo acquisition. it was concluded that the carrying value of the goodwill and trademarks was not impaired. CasinoClub a long-term growth rate of 2% was used to reflect the increasing competitive pressures from large online gaming companies. a discount rate of 17.2% was used, based on company specific pre-tax weighted average cost of capital. it was concluded that the carrying value of the goodwill and trademarks was not impaired. 68 GVC HOLDINGS PLC ANNUAL REPORT 2015 notes to the consolidated financial statements continued for the year ended 31 december 2015