Notes to the Group Financial Statements (continued)
for the year ended 31st December 2012
14. intangible assets (continued)
impairment of goodwill and other intangibles with indefinite useful lives
The carrying amount of goodwill by operating unit is given above. The carrying amount of brand by operating unit is as follows:
2012 2011
£’000 £’000
Estate Agency and Related Services companies
Marsh & Parsons 11,724 11,724
Your Move 2,510 2,510
Reeds Rains 1,241 1,241
LSLi 1,044 596
AMF (trading as Pink Home Loans) 180 180
16,699 16,251
Surveying and Valuation Services companies
e.surv Chartered Surveyors 1,281 1,281
1,281 1,281
17,980 17,532
Goodwill acquired through business combinations and brands has been allocated for impairment testing purposes to statutory companies or groups
of statutory companies which are managed as one cash generating unit as follows:
• Estate Agency and Related Services companies
• Marsh & Parsons
• Your Move (including its share of cash flows from LSL CCS)
• Reeds Rains
• LSLi, which includes ICIEA, David Frost Estate Agency, JNP Estate Agents, GFEA, Davis Tate and Lauristons1
• AMF
• Templeton LPA
• First Complete
• Surveying and Valuation Services companies
• e.surv
1
Directors viewed these companies/operating units as part of LSLi for impairment testing purposes.
These represent the lowest level within the Group at which goodwill is monitored for internal management purposes.
Estate Agency and Related Services companies
The recoverable amount of the Estate Agency and Related Services companies has been determined based on a value in use calculation using cash
flow projections based on financial budgets approved by the Board and three year plan. The discount rate applied to cash flow projections is 11.3%
(2011: 10.7%) and cash flows beyond the three year plan are extrapolated using a 0% (2011: 0%) growth rate even though there is evidence of gain in
market share in 2012.
Surveying and Valuation Services companies
The recoverable amount of the Surveying and Valuation Services companies is also determined on a value-in-use basis using cash flow projections
based on financial budgets approved by the board and three year plan. The discount rate applied to the cash flow projections is 11.3% (2011: 10.7%).
The growth rate used to extrapolate the cash flows of the Surveying and Valuation Services companies beyond the three-year plan is 0% (2011: 0%).
84 ANNUAL REPORT AND ACCOUNTS 2012