Note Intangible assets
Goodwill by cash-generating unit
2019 2018
Food Ingredients 1,213 1,080
Chocolate & Confectionery Fats 901 586
Technical Products & Feed - -
Total 2,114 1,666
Note Property, plant and equipment
Group Land and buildings Plant and machinery
Equipment, tools and
fixtures and fittings
Non-current assets
under construction Total
Cost at January 1, 2018 2,187 8,733 565 767 12,252
Investments 50 306 56 290 702
Disposals - -33 -6 - -39
Reclassification to tax assets - - - -8 -8
Reclassifications 116 174 38 -329 -1
Exchange differences 41 252 19 19 331
Accumulated cost at December 31, 2018 2,394 9,432 672 739 13,237
Cost at January 1, 2019 2,394 9,432 672 739 13,237
Investments 4 277 35 469 785
Acquired through business combinations 10 191 1 - 202
Disposals -1 -18 -2 - -21
Reclassifications 46 385 20 -451 0
Exchange differences 89 364 38 25 516
Accumulated cost at December 31, 2019 2,542 10,631 764 782 14,719
14
15
95
Reviewing impairment of goodwill
In preparing the financial statements for 2019, the Group has
reviewed impairment of goodwill.
Goodwill is allocated to the following cash-generating units;
Business areas Food Ingredients, Chocolate & Confectionery
Fats and Technical Products & Feed. These cash-generating
units correspond to the operating segments of AAK. The
recoverable amount for a cash-generating unit is determined
by calculating its value in use. These calculations are based
on estimated future cash flow as stated in budgets and
forecasts covering a five-year period. Cash flow beyond this
period has been extrapolated by no more than 3 percent (3)
in any case. Working capital beyond the five-year period is
estimated at the same level as year five. Discount rates are
assumed to be 8 percent (8) after tax and 11.4 percent (11.4)
before tax.
Testing has not demonstrated any need for impairment. The
sensitivity in these calculations indicates that recognized
goodwill is still intact even if the discount rate increases by
1 percent or if long-term growth is 1 percent less.