RBS 2009 Annual Report Download - page 304

RBS Group Annual Report and Accounts 2009302
Notes on the accounts continued
Impairment review
The Group’s goodwill acquired in business combinations is reviewed
annually at 30 September for impairment by comparing the recoverable
amount of each cash generating unit (CGU) to which goodwill has been
allocated with its carrying value.
Changes were made to the Group’s reporting structure in the first half
of 2009, which is detailed on page 341. Following the reorganisation of
the Group structure, ABN AMRO and NatWest goodwill was reallocated
to the appropriate CGUs.
The CGUs of the Group, excluding RFS Holdings minority interest where
the goodwill arising is significant, principally on the acquisitions of
NatWest, ABN AMRO, Charter One and Churchill are as follows:
17 Intangible assets continued
Group
Core Other Internally
deposit purchased generated
Goodwill intangibles intangibles software Total
2007 £m £m £m £m £m
Cost:
At 1 January 2007 17,889 265 275 2,642 21,071
Currency translation and other adjustments 1,187 105 177 52 1,521
Acquisition of subsidiaries 23,917 1,974 3,034 791 29,716
Additions — — 6 481 487
Goodwill written off (40) — — — (40)
Disposals and write-off of fully amortised assets — — (3) (84) (87)
At 31 December 2007 42,953 2,344 3,489 3,882 52,668
Accumulated amortisation:
At 1 January 2007 — 127 97 1,943 2,167
Currency translation and other adjustments —1337
Disposals and write-off of fully amortised assets — — (1) (80) (81)
Charge for the year – continuing operations — 110 124 401 635
Charge for the year – discontinued operations — — — 24 24
At 31 December 2007 — 238 223 2,291 2,752
Net book value at 31 December 2007 42,953 2,106 3,266 1,591 49,916
Recoverable Goodwill at
amount 30 September
2009 based on: £m
UK Retail Value in use 2,697
UK Corporate Value in use 2,693
Wealth Value in use 611
Global Transaction Services Value in use 2,749
US Retail & Commercial Value in use 2,761
RBS Insurance Value in use 935