NOTES TO THE BALANCE SHEET

11. Goodwill
20152014
Opening balance75.478.0
Translation differences0.7-1.9
Additions, business acquisitions2.10.8
Disposals--0.3
Depreciation and impairment--1.2
Closing balance78.275.4
Impairment of goodwill relates to a Group company that has been sold during 2014.
Allocation of goodwill
All acquisitions resulting in the Group recognizing goodwill have concerned the acquisition of net assets or business by an individual CGU and goodwill has been allocated to said CGU separately in respect of each acquisition. Goodwill has been allocated to a total of four CGUs.
Specification of goodwill20152014
Finland19.817.7
Sweden32.631.9
Denmark3.63.6
Baltics22.222.2
Total78.275.4
Impairment testing
The company tests for impairment each year. The key assumptions in testing are the growth prospects of the business, cost trends and the discount rate employed.
Management reviews the business performance based on business segments and it has identified Finland, Sweden, Denmark and Baltics as the main segments. Goodwill is monitored by the Management at the business segment level.
In impairment testing, the recoverable amounts of the cash generating units are based on value-in-use calculations. The cash flow estimates employed are based on financial plans adopted by Management and the Board of Directors and span five years. The plans are based on moderate and cautious net sales growth under the assumption that Group EBIT per cent of four will be achieved in the forecast period. The cash flow after the forecast period is extrapolated using a cautious growth factor (1.0 per cent). The growth factors of the CGUs for the period following the forecast period do not exceed the long-term historical growth of the CGUs.
The interest rate has been defined as the weighted average cost of capital (WACC). Calculation of the interest rate is based on market information on companies operating in the same field (control group). In addition, the risks in each market area have been taken into account in the calculation. The interest rates used are 5.2% (5.6%) in Finland, 5.1% (6.0%) in Sweden, 5.3% (5.7%) in Denmark and 5.5% (6.5%) in the Baltic countries. The WACC interest rates changed compared to prior year mainly due to the decrease in risk free interest.
The sensitivity of each CGU to impairment is tested by varying both the discount rate and the growth factor reflecting profitability development. Based on the sensitivity analyses conducted, a reasonably possible change in interest rates or growth factor reflecting profitability development would not result in impairment in any of the CGUs.
As far as Management is aware, reasonable changes in assumptions used in respect of other factors do not necessitate impairment for the goodwill of any cash-generating unit. Sudden and other than reasonably possible changes in the business environment of cash generating units may result in an increase in capital costs or in a situation where a cash-generating unit is forced to assess clearly lower cash flows. Recognition of an impairment loss is likely in such situations.
The annual impairment testing performed did not result in the recognition of impairment charges in 2015 or 2014.