12 Goodwill
Goodwill is subject to impairment testing annually, or more frequently if there are indications of impairment. The recoverable amounts of cash generating units (CGUs) are determined from value-in-use calculations that use amounts from approved budgets and plans for the next seven years and extrapolate cashflows for a further eight years based upon an estimated growth rate. The discount rate applied to the cashflow projections was 9.9 per cent (2008: 13.6 to 15.0 per cent). The growth rate used of nil per cent (2008: 2.4 per cent) was based upon industry growth rates, which do not exceed the long-term average growth rate.
Goodwill is allocated to the appropriate CGU according to the business segment. Goodwill was held entirely within the non-regulated activities business segment at both 31 March 2009 and 31 March 2008.