Page 71 - OneVue Annual Report 2015

Notes to the financial statements

Note 13. Non-current assets – intangibles (continued)

The recoverable amount of OneVue's goodwill has been determined by a value-in-use calculation using a
discounted cash flow model, based on revenue projections over a five year period, together with a terminal value.

Key assumptions are those to which the recoverable amount of an asset or cash-generating units is most sensitive.

The following key assumptions were used in the discounted cash flow model for the Fund Services division and
Platform Services division:

Growth rates
Growth rates reflect management’s plans for the Fund Services and Platform Services divisions. Given OneVue’s
stage of development, growth rates are significant in the next two to three years then reducing to a level consistent
with terminal growth rates of 2.9% and 2.8% respectively.

Discount rates
The discount rate of 17.1% pre-tax reflects management’s estimate of the time value of money and OneVue’s
weighted average cost of capital adjusted for both the Fund Services and Platform Services divisions, the risk free
rate and the volatility of the share price relative to market movements.

There were no other key assumptions.

Based on the above, there is no impairment charge for the Fund Services and Platform Services divisions.

Management believes that other reasonable changes in the key assumptions on which the recoverable amount of
Fund Services division’s and Platform Services division’s goodwill is based would not cause the cash-generating
unit’s carrying amount to exceed its recoverable amount.

Note 14. Non-current assets - investments accounted for using the equity method

Investment in associate Consolidated 2014
Refer to note 34 for further information on investments in associates. 2015 $'000
$'000
Note 15. Current liabilities - trade and other payables 19 19

Trade payables Consolidated 2014
Lease incentive liability (note 21) 2015 $'000
Unearned income $'000
Provision for onerous lease 784 463
Accrued expenses and other payables 212 212
90
Refer to note 23 for further information on financial instruments. 175 -
3,676 -
4,937 1,845
2,520

ONEVUE ANNUAL REPORT - 71