BT 2009 Annual Report Download - page 106

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
104 BT GROUP PLC ANNUAL REPORT & FORM 20-F
11. Intangible assets
Brands,
Telecommunication customer
licences and relationships Computer
Goodwill other and technology softwareaTotal
£m £m £m £m £m
Cost
At 1 April 2007 819 185 118 2,487 3,609
Additions – – – 826 826
Acquisitions through business combinationsb320 6 68 2 396
Disposals and adjustments (62) 36 62 (181) (145)
Exchange differences 11 39 – 43 93
At 1 April 2008 1,088 266 248 3,177 4,779
Additions – – – 839 839
Acquisitions through business combinations 131 – 46 1 178
Disposals and adjustments 1 (3) 20 (237) (219)
Impairmentsb– – (26) (309) (335)
Exchange differences 269 44 88 82 483
At 31 March 2009 1,489 307 376 3,553 5,725
Amortisation
At 1 April 2007 59 24 942 1,025
Charge for the year 12 43 424 479
Acquisitions through business combinations 2 – 2 4
Disposals and adjustments 31 – (164) (133)
Exchange differences 17 – 32 49
At 1 April 2008 121 67 1,236 1,424
Charge for the year 14 62 565 641
Acquisitions through business combinations – – 1 1
Disposals and adjustments (1) – (234) (235)
Exchange differences 22 24 60 106
At 31 March 2009 156 153 1,628 1,937
Carrying amount
At 31 March 2009 1,489 151 223 1,925 3,788
At 31 March 2008 1,088 145 181 1,941 3,355
aComputer software includes additions in 2009 of £529m (2008: £720m) in respect of internally developed computer software.
bImpairment charges of £335m were recognised in 2009, comprising BT Global Services restructuring charges of £81m, BT Global Services contract and financial review charges of £241m (see note 3) and
£13m in relation to the review of the 21CN programme and associated voice strategy. All impairment losses were recognised in the income statement. The recoverable amount of the impaired assets is equal
to their value in use.
Impairment tests of goodwill
The group performs an annual goodwill impairment test, based on its cash generating units (CGUs). The CGUs that have associated
goodwill are BT Global Services and the following business units within BT Retail: Consumer, BT Business, BT Ireland and Enterprises. These
are the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other groups
of assets, and to which goodwill is allocated. Goodwill is allocated to the group’s CGUs as follows:
BT Retail
BT Global
Services Consumer BT Business BT Ireland Enterprises Total
£m £m £m £m £m £m
At 1 April 2007 691 57 – 16 55 819
Acquisitions through business combinations 273 13 34 – – 320
Disposals and adjustments (39) (23) – – – (62)
Exchange differences 11––––11
At 1 April 2008 936 47 34 16 55 1,088
Acquisitions through business combinations 37 10 10 – 74 131
Disposals and adjustments 1––––1
Exchange differences 252–––17269
At 31 March 2009 1,226 57 44 16 146 1,489
FINANCIAL STATEMENTS