Fiven Annual Report 2020

Independent Auditor's Report - Fiven ASA (2) accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed the Key Audit Matter Impairment assessment of goodwill and other intangible assts At 31 December 2020, the Group had goodwill with a carrying value of EUR 5 390 thousand and other intangible assts with a carrying value of EUR 15 254 thousand. The impairment assessment involves significant managements judgements, and a potential impairment may have material impact on the carrying value of the Group’s assets . The use of judgement is in particular related to discount rate (WACC), future revenues from sales of products, EBITDA ratios and capital expenditures. See note 3 «Accounting estimates and judgements» and «Note 17 Impairment assessments» where the impairment model and key assumptions are disclosed. We obtained management’s impairment review. The review includes documentation of management ’s identification of c ash generating units (CGU’s). We challenged management’s key assumptions used in the cash flow forecasts included within the impairment model. We challenged specifically future revenues, EBITDA ratios and capital expenditures. We tested the mathematical accuracy of cash flow models, and assessed relevant data to historical financial data, future budget approved by management and other obtainable market information such as relevant benchmarks for growth estimates. We evaluated the discount rate used by management by comparing its composition to empirical data for future interest rates, relevant risk premium and debt ratio. Key assumptions used were benchmarked against external data and our own internal data. We found the applied discount rate to be within a range of reasonable outcomes. We performed sensitivity analysis on key assumptions in the impairment assessment and found the impairment assessment to be sensitive to changes in WACC, further revenues and EBITDA ratios. We reconciled the sensitivity analysis to the disclosure in the notes. Finally, we considered the adequacy of financial statements disclosures in note 3 and note 17 and found them appropriate. Fiven Annual Report 2020 Auditor’s report   91