Aviva 2006 Annual Report Download - page 148

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Aviva plc
Annual Report and Accounts 2006 144
Notes to the consolidated financial statements continued
16 – Acquired value of in-force business (AVIF) and intangible assets
Intangible Intangible
assets with assets with
indefinite finite
AVIF useful lives useful lives Total
£m £m £m £m
Gross amount
At 1 January 2005 613 44 189 846
Additions 13 – 60 73
Acquisition of subsidiaries – 260 73 333
Foreign exchange rate movements (12) (2) 1 (13)
At 31 December 2005 614 302 323 1,239
Additions 22 – 58 80
Acquisition of subsidiaries 1,642 – 470 2,112
Disposals – – (14) (14)
Transfers – (39) 39 –
Foreign exchange rate movements (93) – (23) (116)
At 31 December 2006 2,185 263 853 3,301
Accumulated amortisation
At 1 January 2005 (248) –(82) (330)
Amortisation for the year (26) – (39) (65)
Impairment losses recognised (29) – (6) (35)
Foreign exchange rate movements 4–(1) 3
At 31 December 2005 (299) – (128) (427)
Amortisation for the year (58) – (72) (130)
Disposals – – 1 1
Impairment losses recognised (28) – 2 (26)
Foreign exchange rate movements 6 – 3 9
At 31 December 2006 (379) – (194) (573)
Carrying amount
At 31 December 2005 315 302 195 812
Less: Amounts classified as held for sale – – (9) (9)
315 302 186 803
At 31 December 2006 1,806 263 659 2,728
Additions to gross AVIF includes £20 million for the movement in the shadow adjustment made to the carrying value of the AVIF in
Aviva USA.
Intangible assets with indefinite useful lives comprise the RAC and BSM brands, and the value of the Union Financière de France Banque
sales force, wherethe existing lives of the assets and their competitive position in, and the stability of, their respective markets support
this classification. Impairment testing on intangibles is covered in note 15(b).
Financial statements continued