AMPER, SA and Subsidiaries Consolidated Financial Statements for ...

i) To carry out impairment tests, specific forecasts are prepared for each cash-generating
unit. These forecasts are obtained from available financial budgets and financial
projections approved by the Group's Management.
ii)
iii)
The estimates of future cash flows for each cash-generating unit are based on forecast
(after tax). Discount rates are also calculated after tax.
The real value of future cash flow estimates of each cash-generating unit is obtained
using a discount rate that takes appropriate risk factors into consideration and is
agreed on the basis of general market consensus.
The following table details the main assumptions used for impairment loss during the financial year:
CGU Designation
Business
Plan
Average
rate of
growth
Discount rate
Rate of growth in
perpetuity
Communication
and Security Spain
2012-2016
3%
10.5%
2%
Communication
and Security Brazil
2012-2016
5%
12.5%
2%
Communication
and Security
Latam
2012-2016
5%
14.5%
2%
Using the assumptions raised above and with respects to each of the three cash generating units, the
recoverable value exceeds the carrying amount of goodwill and assets allocated to the cash generating
unit. In the event that the discount rate increases by 50 basis points, or the rate of growth in perpetuity
decreases by 50 basis points, the value in use would remain above the recoverable amount. In a
hypothetical case of the unfavourable evolution of both assumptions in the range raised, the goodwill of
the Communication and Security Spain Cash Generating Unit would have to register an impairment
loss, which in no event would be significant in the Consolidated Financial Statements.
Impairment analysis for financial year 2010
In the 2010 period for impairment losses, forecasts were taken into account based on the business plan
for the period 2010-2015. For the cash-generating unit “Telecom España”, the Compound Annual
Growth Rate (CAGR) of gross earnings for the period from 2011 to 2015 was between 1.8% and 2.5%.
For the cash-generating unit “Seguridad”, the Compound Annual Growth Rate (CAGR) for gross
earnings for the period 2011-2015 was 9.5%.
For the cash-generating unit “Telecom Brasil”, the Compound Annual Growth Rate (CAGR) for gross
earnings for the period 2011-2015 was 10%.
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