Swisscom

According to IAS 36, Swisscom is required to perform the goodwill impairment test for its Italian subsidiary Fastweb on an annual basis. One of the key value drivers within the impairment test is the WACC of the respective cash generating unit. The application of a country risk premium has become best practice when calculating the WACC. IFBC was mandated by Swisscom to develop a method for determining Fastweb's country risk premium and to calculate the current value. Swisscom is the leading telecom-provider in Switzerland.