Page 150 - Annual Report 2014

4 Intangible Assets Telecom- Overview
Group munications and
spectrum licences Software Software in Goodwill Total
$m development $m $m
$m
$m

Cost 116.8 422.5 9.0 220.3 768.6 Strategy
At 1.1.2013 – – 33.8 – 33.8
Additions – (25.8) – – Performance
Transfers – 25.8 – (0.2)
Disposals (0.2) –
At 31.12.2013 116.8 448.1 17.0 220.3 802.2

At 1.1.2014 116.8 448.1 17.0 220.3 802.2
Additions 40.0 0.2 38.6 – 78.8
Transfers – (43.0) – –
Disposals – 43.0 – (1.4)
At 31.12.2014 (1.4) –
156.8 489.9 12.6 220.3 879.6

Accumulated amortisation 59.1 312.5 – – 371.6 Governance
At 1.1.2013 6.5 43.6 – – 50.1
Charge for the year – (0.1) – – (0.1)
Disposals – – 421.6
At 31.12.2013 65.6 356.0

At 1.1.2014 65.6 356.0 – – 421.6 Financials
Charge for the year 6.4 48.5 – – 54.9
Disposals – (1.4) – – (1.4)
At 31.12.2014 – – 475.1
72.0 403.1

Carrying amount 51.2 92.1 17.0 220.3 380.6
At 31.12.2013 84.8 86.8 12.6 220.3 404.5
At 31.12.2014

Impairment tests for goodwill

The carrying value of the Group’s goodwill is assessed for impairment annually or more frequently if there are indications
that the goodwill might be impaired. For the purposes of impairment testing, goodwill is allocated to the cash generating unit
(“CGU”) comprising the Group’s integrated fixed, mobile, cable and broadband operations. This represents the lowest level
within the Group at which goodwill is monitored for impairment for internal management purposes.

The recoverable amount of the CGU is determined based on value-in-use calculations. The key assumptions for the value-in-
use calculations are the discount rates, growth rates and expected changes to profit margins. The value-in-use calculations
apply a discounted cash flow model using cash flow projections from the most recent financial budget and forecasts approved
by management covering 4 years. The forecast cash flows were extrapolated using an estimated growth rate of 2.8% (2013:
5.3%). The pre-tax discount rate applied is assumed at 5.8% (2013: 5.9%) for the value-in-use calculation.

No impairment charge was required for the carrying amount of goodwill assessed as at 31 December 2014 and 31 December 2013
as the recoverable value was in excess of the carrying value. Any reasonably possible change to the key assumptions applied was
not likely to cause the recoverable values to be below the carrying values.

StarHub Ltd | Annual Report 2014 147