b'Mercia Asset Management PLC99Annual Report and Accounts 202115. GoodwillGoodwill arising on the businesses acquired to date, being Mercia Fund Management Limited, Enterprise Ventures and the VCT fund management business, is set out in the table below.Vct fund Mercia Fundenterprisemanagement Management Ventures business total000 000 000 000costAs at 1 April 2019 2,455 7,87310,328Additions 6,314 6,314As at 31 March 2020 2,455 7,873 6,314 16,642as at 31 March 2021 2,455 7,873 6,314 16,642Goodwill of 6,314,000 arose on the acquisition of the VCT fund management business in December 2019. Details of the consideration paid and assets acquired as part of this transaction are set out in note 14 to these consolidated financial statements.Goodwill for each business acquired has been assessed for impairment as at 31 March 2021. Recoverable amounts for each cash generating unit (CGU) are based on the higher of value in use and fair value less costs of disposal (FVLCD). Strategic report GovernanceThe value in use calculations are based on future expected cash flows generated by each CGU, as derived from the approved budget for the year ended 31 March 2022. Key assumptions are the discount rate and growth rates used in forecasting the operating results. Where the fund management contracts are evergreen, a value into perpetuity has been used based on a zero growth rate beyond the five year forecast period.The review concluded that the value in use of each CGU exceeds its carrying value. The Directors do not consider that any reasonable possible changes to the key assumptions would reduce the recoverable amount of the CGUs to their carrying value. Financial statements16. Intangible assetsIntangible assets represent contractual arrangements in respect of the acquired VCT fund management business and the acquisition of Enterprise Ventures, where it is probable that the future economic benefits that are attributable to those assets will flow to the Group and the fair value of the assets can be measured reliably.000costAs at 1 April 2019 1,504Additions20,331as at 31 March 2020 and 31 March 2021 21,835accumulated amortisationAs at 1 April 2019 920Charge for the year 852as at 31 March 2020 1,772charge for the year 2,317as at 31 March 2021 4,089net book valueAs at 1 April 2019 584As at 31 March 2020 20,063as at 31 March 2021 17,746The intangible asset recognised on acquisition of Enterprise Ventures became fully amortised in March 2021.'