Page 87 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued) 12 Goodwill (continued)
Key assumptions include management’s estimates on sales growth and discount rates. Cash flow forecasts and key assumptions are generally determined based on historical performance together with management’s expectation of future trends affecting the industry and other developments and initiatives in the business. The prior year assumptions were prepared on the same basis. Applying these techniques no impairment charge arose in 2017 (2016: nil).
Sensitivity Analysis
Sensitivity analysis was performed by increasing the discount rate and reducing cashflows. The following individual parameters were applied before the resulting calculation gave rise to an impairment loss:
Paragon Customer Communications
Paragon ID
Paragon Graphic Services
Discount rate
56% (2016: 44%) 40% (2016: 56%) 43% (2016: 48%)
Reduction in cashflows
73% (2016: 67%) 65% (2016: 66%) 63% (2016: 66%)
would not cause the carrying value of the goodwill to
Management believes that any reasonable change in any of the key assumptions
exceed its carrying amount.
13 Financial investments
Cost of valuation
At 1 July 2016
Acquisitions
Share of profits Exchange movements
At 30 June 2017
Details on the Group’s joint ventures and associates can be found in note 33.
33
– – (2)
31
– –
74 905 – 80 (2) (9)
72 976
33
979 80
(13)
1,079
the equity
976 72
1,048
| 83
Trade investments
Investment in associates
Investment in joint ventures
Total
€000
€000
€000
€000
Summarised financial information for the Group’s investment in joint ventures and associates which are accounted for using method is as follows:
As at 30 June 2017
Joint ventures 3 1,257 (284)
Non-current assets
Current assets
Current liabilities
Total
€000
€000
€000
€000
Associates –
428 (356)
At 30 June 2017 3 1,685 (640)
As at 30 June 2016
Non-current assets
Current assets
Current liabilities
Total
€000
€000
€000
€000
Joint ventures – – ––
Associates –
– ––
At 30 June 2016 – – ––
Paragon Group Limited – 05258175