Page 123 - KELAG Annual Report 2019
P. 123

For the purpose of the impairment test, the goodwill resulting in the KELAG Group was allocated
           to CGUs as follows and after the impairment test report the following values:

            TOTAL GOODWILL IN THE KELAG GROUP                   3.8            3.4
              BWI Biowärme Imst GmbH & Co KG                     0.2           0.2
              District heat Friesach                             0.7           0.7
              District heat Obertauern                           2.5           2.5
              Zarja Ekoenergija d.o.o.                           0.1           0.0
              ZHO Fernwärmeversorgung Ottenschlag GmbH           0.3           0.0

           The goodwill identified was calculated as the recoverable amount of the value in use applying a
           discount rate net of tax of 4.55% in Austria (prior year: 4.96%) and 5.40% in Slovenia. For key
           assumptions that influence the recoverable amount, please refer to the impairment assessment
           of non-financial assets. The impairment testing of goodwill identified did not indicate any need
           for impairment.

           As some of the leases in the KELAG Group have an unlimited term or contain termination rights,
           judgement  is  required  to  calculate  the  contractual  term  in  accordance  with  IFRS 16.  This  is
           because  in  these  cases  IFRS 16  requires  that,  in  addition  to  any  minimum  contractual  term,
           (optional) periods in which KELAG is reasonably certain it will remain party to the contract be
           taken into account. This estimate includes all circumstances that could impact the contractual
           term for KELAG, such as an economic incentive from assets associated with the rental agreement,
           operating significance of the leased items or costs for alternatives.
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