19. Goodwill and other intangible assets that have indefinite live are tested for impairment at each reporting date. These assets were recognised at fair value when Icelandair Group Holding hf. acquired the Company in October 2006.  Goodwill and other intangible assets with indefinite live are specified as follows:            
             
  

             
 These assets were tested for impairment by comparing their carrying amounts to their fair value less cost to sell.  Trademarks are tested by using the royalty relief method.   The main assumption consist of royalty rate 0.7 -1.5% and the discount rate 13.5 -15.2%.            
             
 For the purpose of impairment testing on goodwill, goodwill is allocated to the Group´s segments which represents the lowest level within the Group at which the goodwill is monitored for internal management purposes.  The aggregate carrying amount of goodwill allocated to each unit are as follows:            

                          
 For the purpose of impairment testing on goodwill, fair value less cost to sell is determined by discounting the future cash flows generated from the continuing use of each unit and was based on the following key assumptions:                        
             
 "Cash flows were projected based on actual operating results and a 4-year business plan. Cash flows were extrapolated for determining the residual value using a constant growth rate which was consistent with the long-term average growth rate for the industry. Management believes that this forecast period was justified due to the long-term nature of the business.  The anticipated annual revenue growth included in the cash flow projections was 3.5 - 16.0% for the years 2008 to 2011.  A post-tax discount rate of 11.5 - 13.2% was applied in determining the recoverable amount of the units. The discount rate was estimated based on an industry average weighted average cost of capital, which was based on a possible range of debt leveraging of 31-57% percent at a market interest rate of 7.5 - 9.4%."            
             
 "The values assigned to the key assumptions represent management’s assessment of future trends in the airline, transportation and the tourism industry and are based on both external sources and internal sources (historical data)."