Other intangible assets are computer software and other licences.

The Group did not pledge any intangible assets as collateral. As at 31 December 2011, trade payables for intangible assets amounted to EUR 689,814 (vs. EUR 1,523,409 as at 31 December 2010).

The amortisation for the current year is split between several items of the income statement. For details, see expenses by nature and function in Section 7.11 Acquisition costs and other operating expenses.

As at 31 December 2011, intangible assets with an indefinite useful life amounted to EUR 9,368 and remained the same compared to previous year.

The Group has no individual intangible assets of material value to the consolidated financial statements.

Goodwill

The goodwill of the above stated items was tested as at 31 December 2011. It was calculated that goodwill impairment is required for certain items in Triglav  Osiguranje a.d.o., Belgrade.  Total goodwill impairment of EUR 1.3 million is disclosed under other expenses (see Section 7.13).

The following are the changed circumstances and/or new facts that influenced the goodwill impairment in Triglav Osiguranje a.d.o., Belgrade:

• failure to achieve business plans and operating at a loss;
• lower than expected long-term returns in relation to the assumed investment risks, mainly due to lower operating efficiency and productivity of resources used for the operation.

Goodwill impairment as at the reporting date was tested by using the constant nominal discount rate of 18.7% over the entire forecast period (detailed projections and residual value); the rate was also in compliance with the nominal component of the expected cash flow derived from long-term expectations of international financial institutions. Projections for the period of inconstant growth were made for a period of 14 years with the assumption of constant growth thereafter. A longer than 5-year period of inconstant growth was used because of the expected convergence economic growth of the country in which the evaluated company is operating and consequently, the convergence of insurance market to more developed countries due to a possible consideration of changes in key value parameters (profitability and operational risk) along with the general development of insurance markets and the implementation of the envisaged measures and their impact on the Company's business operation in accordance with the Group's strategy. For these reasons the assessed Company was expected to achieve sustainable profitability in its core business over the Strategy period, and at the same time to manage the transition to the Group's standards. The development practice of insurance markets in more developed countries shows that, subject to the expected development of appropriate safeguards in the assets and operations of a company, and the expected stabilised growth in insurance contracts along with stable conditions on the insurance market, a moderate but constant growth can also be expected in cash flows, thus diminishing the probability and impact of a possibly incorrect basis for the value assessment of expected cash flows over the residual constant period. In general, decreasing growth rates of value parameters were applied in projection extrapolations within the framework of long-term economic growth rates in the country of operation. Measures and their effects are expected on the basis of the experience of other Triglav Group members, adjusted to the relevant market and company. A 3% nominal infinite growth rate was applied, derived from the expected long-term economic growth in the economically strongest EU country increased by the expected long-term difference in the inflation between the country in which the evaluated company is operating and the economically strongest EU country.