Page 27 - Kitron Annual Report 2011

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Notes to the consolidated financial statements
Accounting carrying amount includes the carrying amount of fixed assets which are treated for accounting
purposes as financial leasing, see note 21. Machinery and equipment, buildings and land were provided at
31 December as security for NOK 81.9 million and NOK 5.4 million (2010: NOK 70.5 million and NOK 5.8
million), see note 21.
(Amounts in NOK 1000)
Goodwill
At 1 January 2010
Acquisition cost
28 164
Accumulated impairment charge
3 832
Accounting carrying amount
24 332
Fiscal 2010
Opening balance
24 332
Additions
2 454
Closing balance
26 786
At 31 December 2010
Acquisition cost
30 618
Accumulated impairment charge
3 832
Accounting carrying amount
26 786
Fiscal 2011
Opening balance
26 786
Additions
0
Closing balance
26 786
At 31 December 2011
Acquisition cost
30 618
Accumulated impairment charge
3 832
Accounting carrying amount
26 786
The company’s cash-generating units are identified by country.
Allocation of carrying amount of goodwill by business area and by country:
(Amounts in NOK 1000)
2011
2010
Norway
715
715
Sweden
3 555
3 555
Lithuania
20 062
20 062
Germany
2 454
2 454
Total
26 786
26 786
The recoverable amount for a cash-generating unit is based on a calculation of value in use.
The cash flow assumption is based on financial budgets approved by the company’s management. These
calculations is based on growth assumptions which correspond with industry expectations of growth in the
EMS market in the coming years ( 10 per cent annually) and no significant changes in margins. The calculations
are based on cash flows for the next five years and a discount rate of 15 per cent.
Note 11 Goodwill