RBS 2007 Annual Report Download - page 47

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RBS Group • Annual Report and Accounts 2007
Business review
Accruals in relation to integration costs are set out below.
At Charge Utilised At
31 December to income during 31 December
2006 statement the year 2007
£m £m £m £m
Staff costs 23 18 (37) 4
Premises and equipment — 4 (2) 2
Other 8 86 (93) 1
31 108 (132) 7
Integration costs in 2007 were £108 million compared with
£134 million in 2006 and £458 million in 2005 comprising
amortisation of internally developed software and other
expenditure. Software costs were previously written-off as
incurred under UK GAAP but under IFRS are now amortised
over 3-5 years. All software relating to the NatWest integration
was fully amortised by the end of 2005. The balance of
integration costs principally relates to the integration of
Churchill, First Active and Citizens’ acquisitions, including
Charter One which was acquired in August 2004.
Integration costs
2007 2006 2005
£m £m £m
Staff costs 18 76 148
Premises and equipment 4 10 39
Other administrative expenses 26 32 131
Depreciation and amortisation 60 16 140
108 134 458