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INDEPENDENT AUDITOR%u2019S REPORTTO THE SHAREHOLDERS OF GUARDIAN MEDIA LIMITEDReport on the Audit of the Consolidated Financial Statements (continued)Key Audit Matters (continued)Key Audit MattersEstimation uncertainty involved in impairment testing of goodwill and other intangibles with indefnite lives Refer to related disclosures in notes 3 and 6, and accounting policy note 2 (xxii) to the consolidated fnancial statements. As described in these notes, impairment tests are performed annually on goodwill and certain indefnite life licences. As required by IAS 36: %u201cImpairment of Assets%u201d, management performed an impairment test on these assets. Based on the impairment test performed during the year, no impairment was recorded in 2018. Impairment tests on goodwill and other intangibles involve signifcant estimation and the application of a high level of judgement relative to key assumptions such as the applicable discount rate and future cash-fows. In determining future cash-fow projections, management uses assumptions and estimates in respect of future market conditions, future economic growth, expected market share and gross margins. The outcome of the impairment testing is sensitive to these assumptions and estimates, such that changes in these assumptions/estimates may result in diferent impairment test conclusions. How our audit addressed the key audit matterOur audit procedures focused on the assessment of the key assumptions utilized by management including the cash-fow projections and the discount rate. We also evaluated whether the value in use impairment test model met the requirements of IAS 36. To this end our procedures included, amongst others, evaluating and testing the assumptions, methodologies, Cash Generating Unit (CGU) determination, discount rate and other key data used by management. We also assessed the assumptions by comparing to historical performance of the entity, local economic conditions and other alternative independent sources of information. In so doing we evaluated the sensitivity of the key assumptions to reasonable possible changes which could cause the carrying amount of the CGU to exceed its recoverable amount. We involved our EY valuation specialist to assist with our audit of the impairment test model, including the cash fows, discount rate and longterm growth rates. We also assessed the appropriateness of the disclosures in the notes to the consolidated fnancial statements, with reference to that prescribed by IFRSs.FINANCIAL REPORT 29