69 2. Summary of significant accounting policies continued Impairment of non-monetary assets including Goodwill  Dialog assesses at each reporting date whether there is an indication that an asset may be impaired. Goodwill is tested for impairment annually (as at 30  November) and when circumstances indicate that the carrying value may be impaired. Impairment testing involves comparing the carrying amount of  each cash-generating unit including goodwill or item of intangible assets, property, plant or equipment to the recoverable amount, which is the higher  of its fair value less costs to sell or its value in use. If the carrying amount exceeds the recoverable amount, the asset is considered impaired and is  written down to its recoverable amount. An impairment is determined for an individual asset, unless the asset does not generate cash inflows that are  largely independent of those from other assets or groups of assets (cash-generating unit). Dialog considers its operating segments as cash-generating  units. If a cash generating unit is found to be impaired, an impairment loss is first recognized on any goodwill allocated to it. Any remaining impairment  amount is then allocated among the other assets of the strategic business entity, and pro-rated impairment losses are recognized on the carrying  amounts of these assets. Impairment losses of continuing operations, are recognised in the income statement in expense categories consistent with the function of the impaired  asset, except goodwill. Impairment losses on goodwill are recognized in “other expense”.  In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market  assessments of the time value of money and the risks specific to the asset. These are forecasted on the basis of the Group’s current planning, the  planning horizon normally being three years including one year of budgeted and two additional forecasted years. In determining the fair value less costs  to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Forecasting for the entire planning period involves making assumptions, especially regarding future selling prices, sales volumes and costs. Where the  recoverable amount is the fair value less costs to sell, the cash-generating unit or individual asset is measured from the viewpoint of an independent  market participant. Where the recoverable amount is the value in use, the cash-generating unit or individual asset is measured as currently used. In  either case, net cash flows beyond the planning period are determined on the basis of long-term business expectations using the respective individual  growth rates derived from market information.  The net cash inflows are discounted at a rate equivalent to the weighted average cost of capital (WACC). To allow for the different risk and return  profiles of the Group’s principal businesses, the WACC is calculated separately for each strategic business unit (synonymously cash generating unit from  impairment test perspective)-specific capital structure is defined by benchmarking against comparable companies in the same industry sector. The cost of  equity corresponds to the return expected by stockholders, while the cost of debt is based on the conditions on which comparable companies can  obtain long-term financing. Both components are derived from capital market information.  For assets other than goodwill, an assessment is made at each reporting date as to whether any indication that previously recognised impairment losses  may no longer exist or may have decreased. If such indication exists, an estimation of the recoverable amount is made. A previously recognised  impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment  loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount, however, cannot  exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.  Such reversal is recognised in profit or loss.  The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date of whether the  fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset.  Where the Group is lessee, finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item,  are capitalised at the inception of the lease at the fair value of the leased property or, if lower, the present value of the minimum lease payments. Lease  payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining  balance of the liability. Finance charges are reflected in profit and loss. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that Dialog will obtain ownership by the end of  the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.  Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease term.  Leases 