Note 10 - Intangible assets
Completed IT development projects* Acquired patents, li-censes, and know-how Goodwill IT development projects in progress* Total
  DKK million DKK million DKK million DKK million DKK million  
Cost at January 1, 2009 229  1,010  461  56  1,756 
Currency translation   -  26  32    -  58 
Additions during the year   -    -    -  11  11 
Disposals during the year (19) (44) (37)   -  (100)
Transfer (to)/from other items 22    -    -  (22)   -  
Cost at December 31, 2009 232  992  456  45  1,725 
Amortization and impairment losses at January 1, 2009 217  314  46  577 
Currency translation   - 
Amortization for the year 84    -  92 
Amortization and impairment losses reversed on disposals for the year   -  (39) (34)   (73)  
Amortization and impairment losses at December 31, 2009 225  363  13  601 
Carrying amount at December 31, 2009 629  443  45  1,124   
 
 
Cost at January 1, 2008 229  1,011  537  31  1,808 
Currency translation   -  (33) (64)   -  (97)
Acquisition of companies   -    -  (12)   -  (12)
Additions during the year   -  32    -  25  57   
Cost at December 31, 2008 229  1,010  461  56  1,756 
Amortization and impairment losses at January 1, 2008 205  245  37     487 
Currency translation   -  (5) (2) (7)
Amortization for the year 12  70    -  82 
Impairment losses for the year   -  11    15   
Amortization and impairment losses at December 31, 2008 217  314  46  577 
             
Carrying amount at December 31, 2008 12  696  415  56  1,179 
* Assets developed internally

 
The carrying amount of goodwill was tested for impairment at December 31, 2009. This did not reveal any need to write down the carrying amounts for impairment, while write-downs of DKK 15 million were made in 2008 based on a concrete assessment of a goodwill asset and a know-how asset.
 
The impairment tests compared the discounted cash flow of the individual cash-generating units to the carrying amounts of the units. Cash flow is based on budgets and business plans for the period 2010–2024. Refer to Company profile for a description of the individual business areas.
 
For the Enzyme Business no formal impairment test has been performed as the expected profit in 2010 within this business area exceeds the value of goodwill DKK 183 million significantly.
Material assumptions used in calculating the discounted cash flow are based on an assessment of the individual unit as follows:
   
2009     Microorganisms    Biopharmaceutical ingredients  
Goodwill   109    151 
Expected sales growth   7.5%   10–15%
Sales growth, terminal value   3.0%   0.8%
2008     Microorganisms    Biopharmaceutical ingredients  
Goodwill 136  127 
Expected sales growth   7.5%   10–15%
Sales growth, terminal value   3.0%   0.6%
 
In 2009, a lower discount rate (7.0%) was used for all segments compared with 2008 (8.5%), primarily because the risk-free interest rate decreased during 2009. The test for impairment in 2009 included a sensitivity analysis based on a discount rate on par with 2008. A test on this basis would not give rise to impairment.