13. Goodwill
€ ('000) 2012 2011
Acquisition cost at 1 January 13,169 13,371
Disposals 0 -202
Acquisition cost at 31 December 13,169 13,169
Accumulated impairment at 1 January -6,965 -6,965
Accumulated impairment at 31 December -6,965 -6,965
Book value on 31 December 6,204 6,204
Impairment testing of goodwill
The majority of goodwill consists of CapMan's acquisition on 27 August 2008 of private equity house Norum, whose goodwill was €5.7 million as at 31 December 2012.
The management of the Russian funds form a cash generating unit. Cash flow projections have been prepared for ten years with no residual value consideration. The cash flow is based on a long term contract, whereby the cash flows for the current fund can be reasonably reliable estimated. The discount percentage used is 12.50%. There is no significant country risk attached to these cash flows, as they relate to management fees received from international investors. The future carried interest potential from the existing fund is limited and therefore has not been considered.
The carrying amount of goodwill is generally sensitive to the success of fundraising. The goodwill may be impaired in future in the event that new funds are not established, the funds' size is less than estimated or in case of delays in the fundraising process. Carried interest income is taken into consideration only when the funds has entered into carry or it can be reliably be estimated to generate carried interest.