The WACC rates in Asia vary within a wide  range with the lowest rate for China and  developed countries, whereas the subcon- tinent, including India and Nepal, has the  highest WACC rates in the region. The risk-free interest rates used in impair- ment tests performed at year-end 2013 were  based on observed market data. For coun- tries where long-term risk-free interest rates  are not observable or valid due to specific  national or macroeconomic changes affect- ing the country, the interest rate is estimated  based on observations from other markets  and/or long-term expectations expressed by  major international credit institutions. The growth in the terminal period and dis- count rates applied in the impairment tests  are summarised to the right. Growth rates are determined for each individual  cash-generating unit, trademark and item of  property, plant and equipment tested. The  growth rates applied for the terminal period are in line with the expected rate of inflation. The applied projections for growth rates and  discount rates are compared to ensure a reason- able link between the two (real interest rate). For the impairment testing of goodwill the  Group uses a pre-tax risk-free interest rate  that reflects the risk-free borrowing rate in  each particular geographical segment. For the impairment testing of trademarks and  property, plant and equipment the Group uses  a post-tax discount rate for each country. In  determining the discount rate, a risk premium  (spread) on the risk-free interest rate is fixed  at a level that reflects management’s expecta- tions of the spread for future borrowings. Carlsberg Group Annual Report 2013 The royalty rate is based on the actual mar- ket position of the individual trademark in  the global, regional and local markets.  The risk premium (spread) for the risk-free  interest rate was fixed at market price or  slightly lower than the current market level,  which is comparable to the market level.  The total interest rate, including spread,  thereby reflected the long-term interest rate applicable to the Group’s investments in the individual markets. Western European markets are gener- ally characterised by stable or declining  volumes. The entire region continues to  experience strong competition, requiring  ongoing optimisation of cost structures and  use of capital. A slight increase in revenue  is expected in the next three years, while  the ongoing restructuring initiatives already  implemented in key countries and under  implementation in other countries, the ini- tiative to establish a fully integrated supply  chain across all markets and the roll-out of  the business standardisation project are ex- pected to contribute to productivity improve- ments and cost savings. Some countries will  continue to be characterised by a high level  of investment as a result of changes to the  production structure. Asia is a growth area with significant growth  in China in particular. Revenue in the emerg- ing markets is expected to increase, while  the more mature markets are expected to  display stable earnings. The Russian beer market has been im- pacted more than anticipated by disruption  from the closure of non-stationary outlets  and sales restrictions from 1 January 2013.  In addition, the region is impacted by the  macroeconomic slowdown causing consum- ers to reduce their spending. This became  increasingly visible during the second half  of 2013. Revenue in the region is expected  to increase in the long run. EASTERN EUROPE WESTERN EUROPE ASIA Consolidated financial statements SECTION 2: ASSET BASE AND RETURNS 77 2013 2012 International,  premium and  speciality beers 3.5-15.0% 3.7-7.5% Strong regional and  national trademarks 3.0-5.0% 3.0-5.0% Local trademarks  and mainstream  trademarks 2.0-3.5% 2.0-3.5% Trademarks and property, plant and equipment ROYALTY RATES  GROWTH RATES  2.3.3  Significant assumptions applied Discount rates applied Growth in the  terminal period Discount rates  (WACC) 2013 2012 2013 2012 Trademarks Western Europe 2.0-3.0% 2.0-3.0% 5.0-6.9% 4.5-7.0% Eastern Europe 2.0-4.5% 2.0-5.0% 8.3-19.8% 8.5-18.9% Asia 2.0-2.5% 2.0-2.5% 7.8-13.6% 6.5-12.9% Growth in the  terminal period Discount rates (risk-free interest rate) 2013 2012 2013 2012 Goodwill Western Europe excl. Unicer-Bebidas de Portugal 1.5% 1.5% 2.7% 2.3%/2.6% Unicer-Bebidas de Portugal 1.5% 1.5% 2.2% 1.6% Eastern Europe 2.5% 2.5% 6.1% 7.0% Asia 2.5-3.5% 2.5-3.5% 4.8-12.7% 3.5-12.1% APPLIED GROWTH AND DISCOUNT RATES DISCOUNT RATE Goodwill  SECTION 2.3  Impairment