For the year ended 30 June 2012 Notes to the financial statements (cont’d) The recoverable amounts for the relevant CGUs have been determined based on value-in-use calculations using first year cash flow  projections from 2013 financial budgets approved by management and the Board. The manner in which the Group conducts each  impairment assessment for years 2 to 5 and into perpetuity is discussed below for each relevant CGU. A Reserve Bank of Australia forecast GDP growth rate B Observed Australian managed funds annual compounding growth for March 2007 to March 2012 C Observed Australian equities and units in managed funds annual compounding growth for March 2007 to March 2012 D Observed IOOF Ltd annual compounding rate of decline for March 2007 to March 2012 E Blended rate of the underlying Australian forecast inflation levels and the applicable Reserve Bank of Australia GDP growth rate The growth rates applied do not exceed the long-term average growth rate for businesses in which each CGU operates. The pre- tax discount rate of 16.5% used reflects the Group’s pre-tax nominal weighted average cost of capital. Management’s assessment  of goodwill’s value-in-use exceeds the value of goodwill allocated to these CGUs, therefore any reasonably possible changes to  assumptions used in management’s assessment will not result in impairment. Management has applied post tax WACC increments of 1% for Perennial Group and 3.5% for Consultum to reflect specific company  risk premiums. These incremental amounts are judgement based and are consistent with accepted valuation industry practice. In respect of the Perennial Group, goodwill has arisen from the acquisition of equity in Perennial Investment Partners Ltd and Perennial  Fixed Interest Partners Pty Ltd while further goodwill has been recorded upon the recognition of an obligation the Group may have  under various shareholder agreements to acquire shares in certain Perennial subsidiaries.  page 92 CGU Consultum Perennial group Multi manager IOOF Ltd Platform  management &  administration Value in Use element Cash inflows years 2 - 5 A C B D B Cash outflows years 2 - 5 E E E D E Cash flows - perpetuity 3% growth from  year 5 3% growth from  year 5 3% growth from  year 5 D 3% growth from  year 5