14. Intangible assets

     2015 2014
Group     Cost
Rm		 Accumulated
amortisation
Rm		 Carrying
value
Rm		   Cost
Rm		 Accumulated
amortisation
Rm		 Carrying
value
Rm		  
Goodwill     – – –   63 – 63  
Trademarks, copyrights and other     251 (205) 46   463 (319) 144  
Software     9 989 (7 788) 2 201   9 197 (7 065) 2 132  
Under construction     546 – 546   494 – 494  
      10 786 (7 993) 2 793   10 217 (7 384) 2 833  

      2015 2014
Company     Cost
Rm		 Accumulated
amortisation
Rm		 Carrying
value
Rm		   Cost
Rm		 Accumulated
amortisation
Rm		 Carrying
value
Rm		  
Trademarks, copyrights and other     245 (199) 46   235 (183) 52  
Software     9 989 (7 788) 2 201   9 183 (7 051) 2 132  
Under construction     546 – 546   493 – 493  
      10 780 (7 987) 2 793   9 911 (7 234) 2 677  

The carrying amounts of intangible assets can be reconciled as follows:

Group     Carrying value at beginning of year
Rm		 Transfers to disposal group
Rm		 Additions
Rm		 Transfers
Rm		 Amortisation
Rm		 Write-offs
Rm		 Carrying value at end of year
Rm		  
2015                    
Goodwill     63 (63) – – – – –  
Trademarks, copyrights and other     144 (93) 10 2 (17) – 46  
Software     2 132 – 530 348 (741) (68) 2 201  
Under construction     494 – 393 (336) – (5) 546  
      2 833 (156) 933 14 (758) (73) 2 793  
2014                    
Goodwill     71 – – – – (8) 63  
Trademarks, copyrights and other     146 – 68 (23) (47) – 144  
Software     1 929 – 278 616 (642) (49) 2 132  
Under construction     435 – 417 (325) – (33) 494  
      2 581 – 763 268 (689) (90) 2 833  

The carrying amounts of intangible assets can be reconciled as follows:

Company     Carrying value at beginning of year
Rm		 Additions
Rm		 Transfers
Rm		 Write-offs
Rm		 Amortisation
Rm		 Carrying value at end of year
Rm		  
2015                  
Trademarks, copyrights and other     52 10 – – (16) 46  
Software     2 132 529 349 (68) (741) 2 201  
Under construction     493 393 (335) (5) – 546  
      2 677 932 14 (73) (757) 2 793  
2014                  
Trademarks, copyrights and other     63 24 (23) – (12) 52  
Software     1 927 278 616 (48) (641) 2 132  
Under construction     435 416 (325) (33) – 493  
      2 425 718 268 (81) (653) 2 677  

There are no intangible assets whose titles are restricted, or that have been pledged as security for liabilities at 31 March 2015. Intangible assets that are material to the group consist of software, copyrights and trademarks whose average remaining amortisation period is 4.1 years (2014: 3.75 years).

No intangible asset apart from goodwill has been assessed as having an indefinite useful life.

Approximately R245 million (2014: R190 million) and R244 million (2014: R145 million) of additions relate to externally acquired intangible assets for group and company respectively while R688 million (2014: R573 million) relates to internal developments for group and company. Changes to the estimated useful lives on intangible assets were necessary due to the transformation programme and the group policies and procedures, resulting in an increase in the amortisation by a further R96 million (2014: Rnil).

Impairment testing of cash-generating units (CGU): group and company

During 2013, the group decided to significantly reduce the size of its legacy network. In line with other fixed-line incumbents globally, the group has, for more than a decade, faced technology changes, competition from mobile operators and an evolving regulatory landscape which have contributed to lower investment returns generated from legacy network assets. While the assets form a significant part of the asset base, they are not relevant in the efficiency focused service offering of the group, with an emphasis on internet protocol compliant assets.

In determining the recoverable amount of the Telkom CGU, the company considered several sources of estimation uncertainty and made certain assumptions/judgements about the future.

The group assessed internal and external indicators of impairment of the CGU and concluded that the carrying value approximates the recoverable amount. No impairment losses or reversals were recognised in profit and loss during the year.