BT 2014 Annual Report Download - page 152

Download and view the complete annual report

Please find page 152 of the 2014 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 213

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213

149
Financial statements
Financial statements
14. Business combinations
On 1 August 2013 the group acquired 100% of the issued share capital of ESPN Global Limited, together with certain trademarks, licences and
programme rights. The purchase was made for consideration of £30m. Intangible assets of £14m and goodwill of £15m have been recognised.
In January 2013, the group acquired 100% of the issued share capital of Tikit Group plc (Tikit’ or BT Tikit’). The purchase was made for cash
consideration of £64m which was settled in the year and the cash acquired with the business was £10m. Intangible assets of £37m recognised in
respect of this acquisition comprised customer relationships, proprietary technology and brand. The fair value adjustments relating to this acquisition
were provisional at 31 March 2013 and have been nalised during 2013/14 without amendment. Goodwill of £33m was recognised on the
acquisition which principally comprised the assembled workforce and forecast synergies.
15. Programme rights
Total
£m
At 1 April 2013 –
Additions 311
Amortisation (203)
At 31 March 2014 108
Additions reect TV programme rights for which the legally enforceable licence period has started during the year. Payments made for programme
rights for which the legally enforceable licence period has not yet started are included within prepayments. See note 16.
Programme rights commitments are disclosed in note 29.
16. Trade and other receivables
At 31 March
2014
£m
2013
£m
Non-current
Other assetsa214 184
a Other assets includes costs relating to the initial set up, transition or transformation phase of long-term networked IT services contracts of £72m (201213: £86m), and prepayments and leasing debtors of
£142m (201213: £98m).
At 31 March
2014
£m
2013
£m
Current
Trade receivables 1,370 1,495
Prepayments 508 515
Accrued income 815 736
Other receivables 214 184
2,907 2,930
Trade receivables are stated after deducting allowances for doubtful debts, as follows
2014
£m
2013
£m
At 1 April 218 187
Expense 77 102
Utilised (98) (73)
Exchange dierences (5) 2
At 31 March 192 218
Trade receivables are continuously monitored and allowances applied against trade receivables consist of both specic impairments and collective
impairments based on the group’s historical loss experiences for the relevant aged c ategory and taking into account general economic conditions.
Historical loss experience allowances are calculated by line of busine ss in order to reect the specic nature of the customers relevant to that line of
business.
Trade and other receivables are classied as loans and receivables and held at amortised cost. The carrying amount of these balances approximates to
fair value due to the short maturity of amounts receivable.
Note 26 provides further disclosure regarding the credit quality of the group’s gross trade receivables.