FAIRFAX MEDIA  LIMITED  2013  63 NOTEs TO THE FINANCIAL sTATEMENTs  1. sUMMARY OF sIGNIFICANT ACCOUNTING POLICIEs (CONTINUED) (ii) oTHeR inTAnGiBle ASSeTS  Mastheads and tradenames (D) IMPAIRMENT OF ASSETS Radio licences Websites (E) INTANGIBLES Computer software other FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 If the business combination is achieved in stages, the  acquisition date fair value of the acquirer’s previously held  equity interest in the acquiree is remeasured to fair value at  the acquisition date through the income statement. Any contingent consideration to be transferred by the  acquirer is recognised at fair value at the acquisition date.  Subsequent changes to the fair value of the contingent  consideration which is deemed to be an asset or liability is  recognised in accordance with AASB 139 either in the income  statement or as a change to other comprehensive income.  If the contingent consideration is classified as equity, it will not  be remeasured until it is finally settled within equity. The majority of mastheads and tradenames have been  assessed to have indefinite useful lives. Accordingly, they  are not amortised and are carried at cost less accumulated  impairment losses. Mastheads and tradenames are tested for  impairment in accordance with Note 1(D). The Group’s mastheads and tradenames operate in  established markets with limited license conditions and  are expected to continue to complement the Group’s new  media initiatives. On this basis, the Directors have determined  that the majority of mastheads and tradenames have  indefinite lives as there is no foreseeable limit to the period  over which the assets are expected to generate net cash  inflows for the Group. Intangibles, property, plant and equipment and investments  accounted for using the equity method are tested for  impairment annually, or at each reporting date where  there is an indication that the asset may be impaired. There are a small number of tradenames that have been  assessed to have a definite useful life and are amortised using  a straight-line method over twenty years. An impairment loss is recognised for the amount by which  the asset’s carrying amount exceeds its recoverable amount.  The recoverable amount is the higher of an asset’s fair value  less costs to sell and value in use. In assessing value in use,  the estimated future cash flows are discounted to their  present value using a post-tax discount rate that reflects  current market assessments of the time value of money  and the risks specific to the asset.  Radio licences, being commercial radio licences held by the  consolidated entity under the provisions of the Broadcasting  Services Act 1992, have been assessed to have indefinite  useful lives. Accordingly, they are not amortised and  are carried at cost less accumulated impairment losses.  Radio licences are tested for impairment in accordance  with Note 1(D). Internal and external costs directly incurred in the  development of websites are capitalised and amortised using  a straight-line method over two to four years. Capitalised  website costs are reviewed annually for potential impairment. For the purposes of assessing impairment, assets are grouped  at the lowest levels for which there are separately identifiable  cash inflows which are largely independent of the cash inflows  from other assets, or groups of assets, which are called cash  generating units. Assets other than goodwill that suffered an impairment are  reviewed for possible reversal of the impairment at the end of  each reporting period. (i) GoodWill Computer software licences acquired are capitalised as an  intangible as are internal and external costs directly incurred  in the purchase or development of computer software,  including subsequent upgrades and enhancements when  it is probable that they will generate future economic  benefits attributable to the consolidated entity. These  costs are amortised using the straight-line method over  three to five years. Goodwill represents the excess of cost of an acquisition over  the fair value of the Group’s share of the net identifiable assets  of the acquired entity at the date of acquisition. Goodwill  on acquisitions of subsidiaries is included in intangible  assets. Goodwill on acquisitions of associates is included in  investments in associates.  Goodwill is not amortised. It is carried at cost less  accumulated impairment losses. Impairment losses relating  to goodwill cannot be reversed in future periods. Goodwill is  allocated to a cash generating unit (CGU) for the purposes of  impairment testing. Impairment is determined for goodwill  by assessing the recoverable amount of each CGU (or group  of CGUs) to which goodwill relates. Refer to Note 1(D). Gains and losses on the disposal of an entity include the  carrying amount of goodwill relating to the entity disposed.  Other intangibles, where applicable, are stated at cost  less accumulated amortisation and impairment losses.  The useful life of the intangible assets are assessed to be  either finite or indefinite and are examined on an annual  basis and adjustments, where applicable, are made on a  prospective basis. Other intangible assets created within the business are not  capitalised and are expensed in the income statement in the  period the expenditure is incurred.