RBS 2012 Annual Report Download - page 424

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Notes on the consolidated accounts continued
17 Intangible assets continued
Goodwill
Core
deposit
intangibles
Other
purchased
intangibles
Internally
generated
software Total
2010 £m £m £m £m £m
Cost
At 1 January 42,643 2,553 4,139 4,815 54,150
Currency translation and other adjustments (374) (59) (63) (21) (517)
Additions — — 46 742 788
Disposal of subsidiaries (15,130) (1,882) (1,664) (544) (19,220)
Disposals and write-off of fully amortised assets — — — (417) (417)
At 31 December 27,139 612 2,458 4,575 34,784
Accumulated amortisation and impairment
At 1 January 28,379 1,562 2,577 3,785 36,303
Currency translation and other adjustments (510) (29) (31) (24) (594)
Disposals of subsidiaries (13,268) (1,139) (1,027) (304) (15,738)
Disposals and write-off of fully amortised assets — — — (391) (391)
Charge for the year
- continuing operations — 68 301 341 710
- discontinued operations — — 2 34 36
Write down of goodwill and other intangible assets
- continuing operations 1 — — — 1
- discontinued operations 9 — — — 9
At 31 December 14,611 462 1,822 3,441 20,336
Net book value at 31 December 12,528 150 636 1,134 14,448
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:
Goodwill at 30 September Recoverable
amount based on
2012
£m
UK Retail Value in use2,770
UK Corporate Value in use2,821
Wealth Value in use611
International Banking Value in use980
US Retail & Commercial Value in use3,827
Direct Line Group (1) Value in use934
Goodwill at 30 September Recoverable
amount based on
2011
£m
2010
£m
UK Retail Value in use2,697 2,697
UK Corporate Value in use2,693 2,693
Wealth Value in use611 611
Global Transaction Services Value in use2,370 2,376
US Retail & Commercial Value in use2,826 2,811
Direct Line Group Value in use935 935
Note:
(1) At 31 December 2012, Direct Line Group was reclassified as a disposal group and all assets, including goodwill, were reported at fair value.
The analysis of goodwill by operating segment is shown in Note 38. The change in reportable segments in 2012 disclosed in Note 38 did not impact the
impairment tests performed in 2011.