Tesco 2005 Annual Report Download - page 46

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44 Tesco PLC
Note 12 Intangible fixed assets
Licence (a) Goodwill (b) Total
£m £m £m
Cost
At 28 February 2004 – 1,058 1,058
Currency translation –8282
Additions at cost 27072
Disposals – (5) (5)
At 26 February 2005 2 1,205 1,207
Amortisation
At 28 February 2004 –9393
Currency translation –88
Charge for the period –6262
At 26 February 2005 – 163 163
Net carrying value
At 26 February 2005 2 1,042 1,044
At 28 February 2004 – 965 965
(a) Licences are amortised over the life of the licence.
(b) Goodwill arising from investments in subsidiaries in the year has been capitalised and amortised over 20 years in accordance with the provisions
of FRS 10, ‘Goodwill and Intangible Assets’. 20 years is the period over which the Directors estimate that the values of the underlying businesses acquired
are expected to exceed the value of the underlying assets.
Goodwill arising from investments in joint ventures and associates has been capitalised and amortised over 20 years in accordance
with the provisions of FRS 9, ‘Associates and Joint Ventures’ and FRS 10, ‘Goodwill and Intangible Assets’ and is included in fixed
asset investments (note 14).
Note 13 Tangible fixed assets
Plant, equipment,
Land and fixtures and fittings
buildings and motor vehicles Total
£m £m £m
Cost
At 28 February 2004 13,718 4,479 18,197
Currency translation 359 87 446
Additions at cost (a) 1,689 728 2,417
15,766 5,294 21,060
Acquisitions 45 1 46
Disposals (841) (436) (1,277)
At 26 February 2005 14,970 4,859 19,829
Depreciation
At 28 February 2004 1,709 2,394 4,103
Currency translation 17 34 51
Charge for the period 230 503 733
1,956 2,931 4,887
Disposals (161) (392) (553)
At 26 February 2005 1,795 2,539 4,334
Net book value (b) (c)
At 26 February 2005 13,175 2,320 15,495
At 28 February 2004 12,009 2,085 14,094
Capital work in progress included above (d)
At 26 February 2005 540 74 614
At 28 February 2004 353 100 453
Notes to the financial statements continued