Air Canada 2013 Annual Report Download - page 107

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2013 Consolidated Financial Statements and Notes
107
For the annual 2013 impairment review, the most recent calculations from the 2011 period were carried forward as the
calculation of the recoverable amount exceeded the carrying amount by a substantial margin, the assets and liabilities making
up the CGU had not changed significantly and no events had occurred or circumstances had changed which would indicate
that the likelihood of the recoverable asset not exceeding the carrying value was remote.
Key assumptions used for the value in use calculations in fiscal 2011 were as follows:
2011
Pre-tax discount rate 15.6%
Long-term growth rate 2.5%
Jet fuel price range per barrel $125 – $135
The recoverable amount of both cash-generating units based on value in use exceeded their respective carrying values by
approximately $1,400. If the discount rate were increased by 380 basis points, the excess of recoverable amount over carrying
value would be reduced to nil.