13.8. Impairment of assets with indefinite useful life

Due to the nature of the business, the majority of single non-current assets of the Group do not generate cash flows which would be independent of flows generated by other assets. Individual cash-generating units are the companies belonging to the particular operating segments.

The allocation of goodwill to the particular units generating cash flows is presented in the table below:

	31.12.2021	31.12.2020
Aluprof S.A. – Aluminium Systems Segment	17,102	17,102
Other companies of the Aluminium Systems Segment*	2,538	2,547
Extruded Products Segment	61	61
Flexible Packaging Segment	350	350
Total	20,051	20,060

*Change in goodwill in other companies stems from currency translation differences from the conversion of currency.

Write-downs of goodwill

Company name	Operating segment	31.12.2021	31.12.2020
Aluprof S.A.	ASS	650	650
Aluprof System Hungary Kft.	ASS	121	121
Romb S.A.	ASS	185	185
Razem		956	956

In the presented periods, the Group performed annual impairment tests for units to which goodwill and intangible assets with indefinite useful lives were assigned. Impairment tests carried out in the presented years did not indicate any need to recognise write-downs. The below impairment test results reflect the breakdown into companies belonging to particular operating segments.

Recognised write-downs are presented in the table below:

Cash-generating units	Aluprof Belgium N.V. (part of the Aluminium Systems Segment)	Aluprof S.A. (part of the Aluminium Systems Segment)	Other companies of the Aluminium Systems Segment*	Other segments*
Basis of recoverable amount	Value in use	Value in use	Value in use	Value in use
Goodwill	2,490	17,102	48	411
Intangible assets with indefinite useful lives (trademarks)	0	22,500	0	0
Valuation amount	Many times exceeding the tested values**	Many times exceeding the tested values**	Immaterial	Immaterial
Impairment	Not determined	Not determined	Not determined	Not determined
Source of data	Proprietary projections	Proprietary projections	Proprietary projections	Proprietary projections
Valuation basis	5-year cash flows projection	5-year cash flows projection	5-year cash flows projection	5-year cash flows projection
Incremental growth rate	0%	0%	0%	0%
Discount rate applied¹⁾	6.02%	7.46%	7.46%	7.46%
Susceptibility analysis:
Interest rate +1%	No impact on test result	No impact on test result	Immaterial	Immaterial
Cash-flows -1%	No impact on test result	No impact on test result	Immaterial	Immaterial

¹⁾ The discount rate applied is based on the discount rate prior to inclusion of the effects of taxation, as defined by IAS 36.
*Collective data for FPS and EPS, tests were made separately for each segment.
**No justified or probable changes in the key assumptions made by the management with regard to the recoverable amount of the units make the carrying amount of the units exceed their recoverable amount.

Cash flows projections were based on 2022 budget assumptions, as well as the strategic assumptions of the Group until the year 2025.

Cash flows projections assume growth of revenue and maintenance of the 2021 margin level for all tested units. Within 5-year detailed projections replacement expenditure was assumed at half the annual depreciation charges, and for the residual period, in the amount of depreciation of the last year of the detailed projection

13.7. Finance costs

13.9. Costs of materials and energy, and the value of goods and materials sold