|
|
3/1/2009 | 3/31/2008 |
|---|---|---|
| Group |
|
|
| Accumulated acquisition values |
|
|
| Opening balance | 140 | 128 |
| Additions | 45 | 11 |
| Exchange rate difference | 7 | 1 |
| Closing balance | 192 | 140 |
| Goodwill allocated to Group companies |
|
|
| Direktronik AB | 9 | 9 |
| STV Sv Tele & Video Konsult AB | 5 | 5 |
| ISG Systems AB | 12 | 12 |
| Elpress AB | 40 | 40 |
| Nordic Alarm AB | 20 | 20 |
| COBS AB | 15 | – |
| K&K Active OY | 35 | 27 |
| K&K Sales OY | – | 4 |
| CAD-Kompagniet A/S | 30 | – |
| ISIC A/S | 6 | 5 |
| Unitronic AG | 20 | 18 |
| Total Goodwill | 192 | 140 |
Test for impairment of goodwill
The value of goodwill is not amortised. Each year an investigation is made to determine if any impairment of goodwill has occurred. The calculation is based on expected future cash flows for each cash-generating unit, based on each respective unit’s business plan.
For present value calculation of expected future cash flows the current weighted average cost of capital (WACC) and expected growth is used based on the unit’s in question return on equity requirement and a market rate for borrowing. In addition hereto, the unique risk associated with the individual unit is taken into account in the form of a special adjustment factor. The weighted average cost of capital used in the Group amounted to 12.0−13.5 percent before taxes.
Discounted cash flows are then compared with the book value per cash-generating unit. The test for impairment is normally performed during the fourth quarter each year and the test performed during the past three years have shown that there is no need for an impairment charge.
