11. Intangible assets

2008 2007
Group Computer software £’000 Goodwill £’000 Total £’000 Compute rsoftware £’000 Goodwill £’000 Total £’000
Cost
At 1 January 7,340 1,539 8,879 5,931 1,539 7,470
Additions 10,260 – 10,260 1,579 – 1,579
Disposals (381) – (381) (517) – (517)
Effect of movements in foreign exchange 1,430 – 1,430 347 – 347
At 31 December 18,649 1,539 20,188 7,340 1,539 8,879
Amortisation  
At 1 January 4,583 – 4,583 3,872 – 3,872
Charge for the year 1,173 – 1,173 934 – 934
Disposals (330) – (330) (470) – (470)
Effect of movements in foreign exchange 907 – 907 247 – 247
At 31 December 6,333 – 6,333 4,583 – 4,583
Net book value  
At 31 December 12,316 1,539 13,855 2,757 1,539 4,296

Impairment tests for goodwill

Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to the country of operation.

A summary of the goodwill allocation is presented below.

2008
£’000		 2007
£’000
UK 1,274 1,274
USA 214 214
Singapore 51 51
1,539 1,539

In assessing value in use, the estimated future cash flows are calculated by preparing cash flow forecasts derived from the most recent financial budget and an assumed growth rate of 5%, which does not exceed the long-term average growth rate of the relevant markets. Management applied a discount rate of 11.1% to the estimated future cash flows to calculate the terminal value of those cash flows. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense.

The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. It is the opinion of the Directors that at 31 December 2008 there was no impairment of intangible assets.