Notes to Consolidated Financial Statements [in thousands of Canadian dollars, except per share amounts] December 31, 2012 and 2011 Fund administration contracts are amortized on a straight-line basis over 25 years. Fund management contracts with a  finite life are amortized on a straight-line basis over a period of up to 20 years, depending on the contractual terms of  such agreements and management’s best estimate of their useful lives. Fund management contracts with an indefi nite  life are not amortized. Goodwill is recorded as the excess of purchase price over identifiable assets acquired. Following initial recognition,  goodwill is stated at cost less any accumulated impairment losses. Goodwill is evaluated for impairment at least annually  and any impairment is recognized immediately in income and not subsequently reversed. Goodwill is allocated to the  appropriate cash-generating unit for the purpose of impairment testing.  Goodwill Other intangibles Equity-based compensation Deferred lease inducements Income taxes Other intangibles include the costs of trademarks and computer software, capitalized where it is probable that future  economic benefits that are attributable to the assets will fl ow to CI and the cost of the assets can be measured reliably. Computer software is recorded initially at cost and amortized over its expected useful life of two to ten years on a  straight-line basis. Trademarks have an indefinite life and are not amortized. CI uses the fair value method to account for equity-settled employee incentive share options. The value of the equity- based compensation, as at the date of grant, is recognized over the applicable vesting period as compensation expense  with a corresponding increase in contributed surplus. When options are exercised, the proceeds received, together with  the amount in contributed surplus, are credited to share capital.  The amount recognized as an expense is adjusted to reflect the number of awards for which the related service conditions  are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that  do meet the related service condition at the vesting date. Lease inducements are deferred and amortized on a straight-line basis over the term of the lease. Current income tax liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based  on the tax rates and laws enacted or substantively enacted at the statement of financial position date. 57