Page 72 - Demo

72GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20156. Intangible assets (continued)LicencesLicenses include two (2) radio broadcast licenses with indefnite useful lives and also the broadcast rights for the 2018 World Cup that will expire by 31 December 2018.World Cup Media RightsThe Company acquired a sub-licence that provides media rights for the exclusive television and radio broadcast of FIFA%u2019s events within Trinidad and Tobago for the period May 1 2015 to December 31 2018. Rights were obtained for a total of fourteen (14) events including the FIFA 2018 World Cup. These rights are amortised on a basis consistent with the revenues expected to be generated. Radio Broadcast LicensesOne radio broadcast licence was acquired through a business combination with Wonderland Entertainment Limited on 9 August 2011 at a cost of $6.099 million and the other radio broadcast licence was acquired on 12 September 2014 at a cost of $5.8 million to operate the 99.5FM broadcast frequency. The licences have 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 these assets have indefnite useful lives.As at 31 December 2015, these assets were tested for impairment and based on the results of the tests no impairment was recorded.The following highlights the information used in the impairment testing of the licences:Basis for recoverable amount Value in useDiscount rate 15%Cash fow projection term Five years and into perpetuityGrowth rate (extrapolation period) 1%(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)