The group tests goodwill for impairments annually.

The recoverable amount of goodwill was determined based on its value in use by using the discounted cash flow method over three years.

	Budgets and forecasts were prepared by management of Word4Word.
	Due to changes in the operational structure of Word4Word and the loss of key contracts, its expenses exceed its income. Therefore it is estimated that the company may incur losses in the foreseeable future.
	Impairment testing, taking into account these developments, resulted in the further reduction of goodwill in 2015 to a recoverable amount of nil.
	Management is not currently aware of any probable changes that would necessitate changes in the key estimates.

Key assumptions used during this valuation process:

	Income decreased between 7% and 10% (2014 increased: 5%).
	Expenses increased between 6% and 7% (2014: 5%).
	Future cash flows were discounted at 18% (2014: 18%) which is a comparable rate for companies of this nature.