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StarHub Ltd Annual Report 2015

4 Intangible Assets

Group Telecommunications Software Software in Goodwill Total Overview
and spectrum $m development $m $m
Cost licences
At 1.1.2014 $m 448.1 $m 220.3 802.2
Additions 0.2 – 78.8
Transfers 116.8 17.0 – –
Disposals 40.0 43.0 38.6 – (1.4)
At 31.12.2014 (1.4) (43.0)
– 220.3 879.6
– 489.9 –
156.8 12.6

At 1.1. 2015 156.8 489.9 12.6 220.3 879.6 Strategy
Additions – 0.2 36.3 – 36.5
Transfers – (32.2) – –
Disposals 32.2 – (5.2)
At 31.12.2015 (1.0) (4.2) –
155.8 518.1 16.7 220.3 910.9

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

At 1.1. 2015 72.0 403.1 – – 475.1
Charge for the year 7.8 44.8 – – 52.6
Disposals (1.0) (3.9) – – (4.9)
At 31.12.2015 – – 522.8
78.8 444.0

Carrying amount 84.8 86.8 12.6 220.3 404.5 Governance & Sustainability
At 31.12.2014

At 31.12.2015 77.0 74.1 16.7 220.3 388.1

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- Financials
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. The forecast cash flows were extrapolated using an estimated growth rate of 3.8% (2014: 2.8%). The pre-tax
discount rate applied is assumed at 6.3% (2014: 6.3%) for the value-in-use calculation.

No impairment charge was required for the carrying amount of goodwill assessed as at 31 December 2015 and 31 December 2014
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 value to be below the carrying value.