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54NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2012(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)4. Intangible assets (continued)LicenceIntangible assets include a radio broadcast licence acquired through a business combination. The licence has been granted for a minimum of 10 years by the relevant government agency with the option to renew at the end of the period at little or no cost to the Group. Previous licences acquired have been renewed which has allowed the Group to determine that this asset has an indefinite useful life.As at 31 December 2012, this asset was tested for impairment and based on the results of the test no impairment was recorded.The following highlights the information used in the impairment testing of the licence:-Basis for recoverable amount Value in use Discount rate 15% Cashflow projection term Five years and into perpetuityGrowth rate (extrapolation period) 2%GoodwillIn accordance with IFRS 3, goodwill arising from the acquisition of the Trinidad Broadcasting Company Limited and Prime Radio Limited in 1998 was reviewed for impairment at year end. Based on the results of this review no impairment expense was required.The following highlights the information used in the impairment testing of goodwill for the cash generating unit:-Basis for recoverable amount Value in useDiscount rate 15%Cash flow projection term Five years and into perpetuityGrowth rate (extrapolation period) 2% The recoverable amount of the cash generating unit was determined using the %u201cvalue in use%u201d method. These calculations use pre-tax cash-flow projections based on financial budgets approved by management. The discount rates used are pre-tax and reflect the specific risk relating to the cash-generating unit.Guardian_Media_Annual_Report2012.indd 54 4/17/13 7:31 PM