RBS 2010 Annual Report Download - page 338

19 Intangible assets continued
Group
Goodwill
Core
deposit
intangibles
Other
purchased
intangibles
Internally
generated
software Total
2008 £m £m £m £m £m
Cost
At 1 January 2008 42,953 2,344 3,489 3,882 52,668
Transfers to disposal groups (3,692) (240) (105) (146) (4,183)
Currency translation and other adjustments 8,905 680 961 214 10,760
Acquisition of subsidiaries 524 — — — 524
Additions — — 23 602 625
Disposal of subsidiaries (3,066) — — (7) (3,073)
Disposals and write-off of fully amortised assets —(4) (1) (21) (26)
At 31 December 2008 45,624 2,780 4,367 4,524 57,295
Accumulated amortisation and impairment
At 1 January 2008 —238 223 2,291 2,752
Transfer to disposal groups — — — (37) (37)
Currency translation and other adjustments —150 210 69 429
Disposals and write-off of fully amortised assets —(3) (1) (19) (23)
Charge for the year - continuing operations —89 301 581 971
Charge for the year - discontinued operations — 248 281 70 599
Write down of goodwill and other intangible assets - continuing operations 15,524 — 927 434 16,885
Write down of goodwill and other intangible assets - discontinued operations 14,538 685 428 19 15,670
At 31 December 2008 30,062 1,407 2,369 3,408 37,246
Net book value at 31 December 2008 15,562 1,373 1,998 1,116 20,049
Goodwill analysed by operating segment is shown in Note 40.
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.
The CGUs of the Group, excluding RFS Holdings minority interest, where
the goodwill is significant, principally arose on the acquisitions of NatWest,
ABN AMRO, Charter One and Churchill and are as follows:
Recoverable
amount
based on
Goodwill at
30 September
2010
£m
Goodwill at
30 September
2009
£m
UK Retail Value in use 2,697 2,697
UK Corporate Value in use 2,693 2,693
Wealth Value in use 611 611
Global Transaction Services Value in use 2,376 2,749
US Retail & Commercial Value in use 2,811 2,761
RBS Insurance Value in use 935 935
Recoverable
amount
based on
Goodwill
prior to write
down
£m
Write down
£m
Goodwill at
31 December
2008
£m
UK Retail & Commercial Banking Value in use 6,009 — 6,009
Global Banking & Markets Value in use 8,946 (8,946) —
Global Transaction Services Value in use 3,121 — 3,121
Europe & Middle East Retail & Commercial Banking Value in use 1,201 (1,201) —
Asia Retail & Commercial Banking Value in use 970 (863) 107
US Retail & Commercial Banking Value in use 7,405 (4,382) 3,023
RBS Insurance Value in use 935 — 935
RBS Group 2010336
Notes on the accounts continued