FINANCIAL REVIEW 72 3.8 Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its re- coverable amount, which is the higher of its fair value less cost to sell and its value in use. The fair value less cost to sell calculation is based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the assets. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the group is not yet committed to, or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recover- able amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes. 3.9 Prodist impairment The assessment of the recoverable amount and exposure of the Prodist Investments, loans and guarantees requires estimation and judgement around estimates and assumptions used, including: FINANCIAL REVIEW The manner in which a restructuring plan may be decided upon and the effective imple- mentation thereof to realise as much value as possible of the assets in Prodist; The realisation value of assets; and The net exposure to creditors.