The Altamar group has allocated to its Cruises cash-generating unit goodwill of 5,000,000 and a brand with an indefinite useful life of 1,500,000, both significant. The recoverable amount is value in use, based on projections over 5 years, a growth rate of 2% beyond that period and a discount rate of 9%. The key assumptions are the occupancy rate and the average price per passenger, set using historical data and industry forecasts. A reasonably possible fall of 3 points in the occupancy rate would give rise to a loss. No loss is recognised. Draft the outline of the note on this unit's estimates.
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