on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group and the Company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equate to the related actual results. T o enhance the information content of the estimates, certain key variables that are anticipated to have a material impact on the Group’s and the Company’s results and financial positions are tested for sensitivity to changes in the underlying parameters. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below: (a) Impairment of associates The Group and the Company assess impairment of itsinvestment in associates whenever the events or changes in circumstances indicate that the carrying amount may not be recoverable, i.e. the carrying amount is more than the recoverable amount. Recoverable amount is measured at the higher of the fair value less cost to sell and its VIU. The VIU is the net present value of the projected future cash flow derived from the investment discounted at an appropriate discount rate. Projected future cash flows are based on the Group’s estimates calculated based on historical, sector and industry trends, general market and economic conditions, changes in technology and other available information. The assumptions used, results and sensitivity of the impairment assessments are disclosed in Note 9. (b) Impairment of intangible assets The Group tests intangible assets which includes goodwill for impairment annually in accordance with its accounting policy and whenever events or change in circumstances indicate that this is necessary within the financial period. This requires an estimation of the VIU of the cash generating unit (‘CGU’) to which the goodwill is allocated. Estimating the VIU requires the Group to make an estimate of the