Audited by PwC

Note 10 - Intangible assets

Completed IT development projects* Acquired patents, li-censes, and know-how Goodwill IT development projects in progress* Total
  DKK million DKK million DKK million DKK million DKK million  
Cost at January 1, 2008 229  1,011  537  31  1,808 
Currency translation   -  (33) (64)   -  (97)
Acquisition of companies   -    -  (12)   -  (12)
Additions during the year   -  32    -  25  57 
Disposals during the year   -    -    -    -    -  
Cost at December 31, 2008 229  1,010  461  56  1,756 
Amortization and impairment losses at January 1, 2008 205  245  37     487 
Currency translation   -  (5) (2) (7)
Amortization for the year 12  70    -  82 
Impairment losses for the year   -  11    15   
Amortization and impairment losses at December 31, 2008 217  314  46    -  577 
Carrying amount at December 31, 2008 12  696  415  56  1,179   
 
 
Cost at January 1, 2007 260  792  231  17  1,300 
Currency translation   -  (5) (10)   -  (15)
Acquisition of companies   -  328  316    -  644 
Additions during the year   -    -    -  14  14 
Disposals during the year (31) (104)   -    -  (135)  
Cost at December 31, 2007 229  1,011  537  31  1,808 
Amortization and impairment losses at January 1, 2007 221  295  15     531 
Currency translation (1) (3)   -  (4)
Amortization for the year 16  57    -  73 
Impairment losses for the year   -    -  22  22 
Amortization reversed on disposals for the year (31) (104)   -    (135)  
Amortization and impairment losses at December 31, 2007 205  245  37    -  487 
             
Carrying amount at December 31, 2007 24  766  500  31  1,321 
* Assets developed internally
 
The carrying amount of intangible assets, including goodwill, was tested for impairment at December 31, 2008. This did not reveal any need to write down the carrying amounts for impairment, although write-downs of DKK 15 million were made during the year based on a concrete assessment of a goodwill asset (DKK 11 million) and a know-how asset (DKK 4 million).
 
The impairment tests compared the discounted cash flow of the individual cash-generating units to the carrying amounts of the units. Cash flow is based on budgets and business plans for the period 2009–2027.
 
Material assumptions used in calculating the discounted cash flow are based on an assessment of the individual unit as follows:
   
      Microorganisms BPI  
Expected sales growth   7.5%   10–15%
Sales growth, terminal value   3.0%   0.6%
Discount factor   8.5%   8.5%
 
The reason for the change in the discount factor is that as of 2008, risks/probabilities are calculated directly in the cash flows, whereas in 2007 the risk premium was included in the discount factor.