Intangible assets
Intangible assets mainly relate to goodwill, being the difference between the purchase price of an acquisition and the fair value of the Group’s share of the net assets of the acquired subsidiary, associate or joint venture at the effective date of acquisition, taking related costs into account. Goodwill is recognised in the consolidated statement of financial position as an intangible asset or, for investments accounted for using the equity method, included in the carrying amount of the investments in associates. Negative goodwill is recognised in profit or loss immediately.
Goodwill is carried at cost less any accumulated impairment losses. An impairment test is performed annually, or more frequently if deemed necessary. Goodwill impairment losses are not reversed.
Goodwill which is the result of deferred tax purchased with the acquisition of an entity is tested for possible impairment by repeating the calculations underlying the deferred tax provision. Deferred tax relates to unrealised gains and losses on the properties in the entities. The amount of goodwill recognised for a given entity must not exceed the amount of the deferred tax purchased with that entity. With respect to other goodwill, the recoverable amount of cash-generating units included in goodwill must be equal to the higher of the value in use and the fair value less divestment costs.
Other intangible assets mainly relate to software, which is carried at cost less accumulated depreciation and impairment losses.
Source: Annual Report 2009, Chapter Finacial Statements, page 92 (PDF, 240 kB)
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