RBS 2012 Annual Report Download - page 426

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Notes on the consolidated accounts continued
17 Intangible assets continued
The recoverable amount of US Retail & Commercial, based on a 5%
(2010 - 5%) terminal growth rate and a 14.4% (2010 - 14.9%) pre tax
discount rate, exceeded its carrying value by £0.2 billion (2010 - £1.6
billion). A 1% change in the discount rate or terminal growth rate would
change the recoverable amount by approximately £1.1 billion (2010 -
£1.6 billion) and £0.5 billion (2010 - £0.8 billion) respectively. In addition,
a 5% change in forecast pre tax earnings would change the recoverable
amount by approximately £0.6 billion (2010 - £0.7 billion).
The recoverable amount of Direct Line Group, based on a 3% (2010 -
3%) terminal growth rate and a 12.3% (2010 - 13.1%) pre tax discount
rate, exceeded the carrying amount by £0.8 billion (2010 - £2.4 billion). A
1% change in the discount rate or terminal growth rate would change the
recoverable amount by approximately £0.5 billion and £0.2 billion
respectively. In addition, a 5% change in forecast pre tax earnings would
change the recoverable amount by approximately £0.3 billion.
18 Property, plant and equipment
Investment
properties
Freehold
premises
Long
leasehold
premises
Short
leasehold
premises
Computers
and other
equipment
Operating
lease
assets Total
2012 £m £m £m £m £m £m £m
Cost or valuation
At 1 January 4,468 2,855 273 1,823 4,479 3,892 17,790
Transfers (to)/from disposal groups (129) 101 11 95 (135) — (57)
Currency translation and other adjustments (51)21 13 (124) (182) (53) (376)
Reclassifications 24 (47) 21 (6) 8 — —
Additions 372 153 8 121 519 402 1,575
Expenditure on investment properties 10 — — — — — 10
Change in fair value of investment properties
- continuing operations (153) — — — — — (153)
- discontinued operations (5) — — — — — (5)
Disposals and write-off of fully depreciated assets (1,425) (85) (37) (177) (83) (916) (2,723)
At 31 December 3,111 2,998 289 1,732 4,606 3,325 16,061
Accumulated impairment, depreciation and amortisation
At 1 January — 736 114 850 3,035 1,187 5,922
Transfers from/(to) disposal groups — 43 6 66 (65) — 50
Currency translation and other adjustments — (9) 11 (114) (157) (21)(290)
Reclassifications — (7) 7 — — — —
Write down of property, plant and equipment — 9 7 1 — — 17
Disposals and write-off of fully depreciated assets — (15) (4) (16) (36) (462) (533)
Charge for the year
- continuing operations — 94 10 137 438 418 1,097
- discontinued operations — 1 — — 13 — 14
At 31 December — 852 151 924 3,228 1,122 6,277
Net book value at 31 December 3,111 2,146 138 808 1,378 2,203 9,784