EY Corporate homepage

11 Intangible assets

    notes   Customer
relationships/
Brand names
  Goodwill   Software   Total
        €000   €000   €000   €000
                     
At 1 July 2014       1,935   4,663   2   6,600
Acquisition of a subsidiary   5   1,256   2,991   11   4,258
Additions / Purchases       -   -   -   -
Amortization       -360   -   -9   -369
                     
At 30 June 2015       2,831   7,654   4   10,489
                     
Acquisition of a subsidiary   5   1,369   5,146   186   6,701
Additions / Purchases       325   -   64   389
Adjustments   5   -   -878   -   -878
Amortization       -473   -   -63   -536
                     
At 30 June 2016       4,052   11,922   191   16,165
                     
Cost       2,640   4,663   197   7,500
Accumulated amortization       -705   -   -195   -900
                     
At 1 July 2014       1,935   4,663   2   6,600
                     
Cost       3,896   7,654   281   11,831
Accumulated amortization       -1,065   -   -277   -1,342
                     
At 30 June 2015       2,831   7,654   4   10,489
                     
Cost       5,590   11,922   531   18,043
Accumulated amortization       -1,538   -   -340   -1,878
                     
At 30 June 2016       4,052   11,922   191   16,165

Acquisition during the year
Further details of the acquired intangible assets are included in Note 5.

Purchases during the year
On 4 July 2015 EYB acquired a client list.

Adjustments
Further details of the adjustment of goodwill are included in Note 5.

Impairment testing of goodwill
Goodwill acquired through business combinations has been allocated to EYA, which is also the CGU for impairment testing.

Key assumptions used in value in use calculations
The calculation of value in use is most sensitive to the following assumptions: discount rate, budgeted revenue, budgeted gross margin and budgeted operating income.

The value in use calculation is based on cash flow projections from the most recent financial budgets, the discount rates are derived from the CGU’s weighted average cost of capital. The indefinite growth rate used is 0.0%.

Sensitivity to changes in assumptions
With regard to the assessment of value in use, management assessed that no reasonably possible change in any of the above key assumptions would cause the carrying value of the unit to materially exceed their recoverable amount.

As a result of analysis, management did not identify an impairment as at 30 June 2016 and 30 June 2015.