Goodwill has been presented in detail in the table below:
| Period ended 31.12.2014 | Period ended 31.12.2013 | |
|---|---|---|
| Goodwill | ||
| Opening balance | 149 909 | 149 909 |
| Acquisition of subsidiary MPEC Sp. z o.o. in Białystok | 79 414 | - |
| Closing balance | 229 323 | 149 909 |
| Accumulated impairment loss | ||
| Opening balance | (23 184) | (23 184) |
| Impairment loss recognized during the year | (3 131) | - |
| Closing balance | (26 315) | (23 184) |
| Net carrying amount | ||
| Opening balance | 126 725 | 126 725 |
| Closing balance | 203 008 | 126 725 |
Goodwill by cash generating units has been presented in the table below:
| Goodwill | Net carrying amount |
|---|---|
| Wind farm Windfarm (currently part of Enea Wytwarzanie sp. z o.o.) | 102 435 |
| MPEC in Białystok | 79 414 |
| Wind farm Darżyno (currently part of Enea Wytwarzanie sp. z o.o.) | 18 686 |
| MEC Piła | 1 806 |
| Hydro-electric power plants (currently part of Enea Wytwarzanie sp. z o.o.) | 667 |
| 203 008 |
As at 30 September 2014 the Group carried out an impairment test on goodwill. The test covered significant goodwill related to two cash-generating units acquired in 2011: Wind farm Darżyno (currently part of Enea Wytwarzanie sp. z o.o.) and Biogas plant Dobitt (currently Enea Wytwarzanie sp. z o.o.) and also in unit acquired in 2012: Wind farm Windfarm (currently Enea Wytwarzanie sp. z o.o.). As a result of the analysis the Group recognized on 31 December 2014 an impairment loss on goodwill in the amount of PLN 3,131 thousand related to Biogas plant Dobitt.
The most significant assumptions adopted by the Company for impairment testing are presented below:
a) energy price trends for years 2013-2035,
b) price trends of certificates of energy origin from renewable resources and cogeneration,
c) price trends of CO2 emission rights,
d) price trends of coal,
e) allocation of free of charge CO2 emission rights for years 2015-2020 according to the derogation proposal (Art. 10 paragraph 5 of the Directive 2003/87/WE of the European Parliament and the Council),
f) consideration of the new power unit no. 11 in Kozienice power plant,
g) consideration of support system for green energy for the whole projection period but not longer than 2029.
h) Wind farm Darżyno: pre-tax discount rate 5.67%, residual growth rate 0.0%, projection period was extended till 2034 in line with the economic useful life of assets,
i) Biogas plant Dobitt: pre-tax discount rate 6.3%, residual growth rate 0.0%, projection period was extended till 2034 in line with the economic useful life of assets,
j) Wind farm Windfarm: pre-tax discount rate 7.8%, residual growth rate 0.0%, projection period was extended till 2034 in line with the economic useful life of assets,
Based on the sensitivity analysis performed, prices of energy, certificates of origin and CO2 emission rights and discount rates are the key factors having an impact on the estimated value in use of cash generating units.