Econocom - 2019 Universal registration document

192 2019 annual report 06 consolidated financial statements notes to the consolidated financial statements in € ڳ millions Technology Management & Financing Digital Services & Solutions Total 2018 Goodwill at 31 ژ December 2017 114.6 484.2 598.8 Adjustments to acquisition costs - 0.1 0.1 Acquisitions - 32.7 32.7 Disposals - - - Foreign currency translation adjustments - (0.5) (0.5) Impairment - - - Goodwill at 31 ژ December 2018 114.6 516.5 631.1 Of which gross amount 114.6 520.8 635.4 Of which accumulated impairment - (4.3) (4.3) Impairment tests and impairment of goodwill 9.3. Impairment testing involves determining whether the recoverable amount of an asset, CGU or group of CGUs is lower than its carrying amount. The recoverable amount is the higher of fair value less the costs of disposal and value in use. Value in use is determined based on estimated future cash flows and a terminal value, taking into account the time value of money and the risks associated with the business and the specific environment in which the CGU or group of CGUs operates. Cash flow projections are based on the budgets and on business plans covering a period of no more than five ژ years. The terminal value is calculated by discounting normalised annual cash flows to perpetuity. Fair value is the amount that could be obtained from the sale of the tested assets in an arm’s length transaction between knowledgeable, willing parties, after deducting the estimated costs of disposal. These amounts are calculated based on market information. When the recoverable value of the assets of a CGU or group of CGUs is lower than its carrying amount, an impairment loss is recognised. Impairment losses are recorded first as a reduction of the carrying amount of goodwill allocated to a CGU and then charged against the assets of the CGU, pro rata to the carrying amount of each of the components of the CGU. Impairment losses are recorded under “Non-recurring operating income and expenses” in the income statement.