ING Direct 2009 Annual Report Download - page 127

9 INTANGIBLE ASSETS
Changes in intangible assets
Value of
business acquired Goodwill Software Other Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Opening balance 2,084 2,301 3,070 2,245 881 472 880 722 6,915 5,740
Additions (bought) 39 1,329 188 213 3244 230 1,786
Capitalised expenses 79 98 132 420 211 518
Amortisation and unlocking –120 –298 –342 –173 –120 –157 –582 –628
Impairments –155 –27 –9 –44 –9 –226
Effect of unrealised
revaluations in equity –482 555 –482 555
Changes in the composition
of the group –11 –730 –94 –3 –62 5–143 229 –310 –499
Exchange rate differences –48 158 62 –340 10 –17 36 –113 60 –312
Disposals –6 –6 –4 –12 –2 –1 –12 –19
Closing balance 1,502 2,084 3,071 3,070 803 881 645 880 6,021 6,915
Gross carrying amount
as at 31 December 2,518 2,980 3,136 3,225 2,217 1,988 1,007 1,125 8,878 9,318
Accumulated amortisation
as at 31 December –1,016 –896 –1,393 –1,051 –308 –200 –2,717 –2,147
Accumulated impairments
as at 31 December –65 –155 –21 –56 –54 –45 –140 –256
Net book value 1,502 2,084 3,071 3,070 803 881 645 880 6,021 6,915
Amortisation of software and other intangible assets is included in the profit and loss account in Other operating expenses and Intangible
amortisation and other impairments. Amortisation of VOBA is included in Underwriting expenditure.
Additions to Goodwill in 2009 mainly relate to the consolidation of 3W Holding B.V. (EUR 26 million) and to the extension of ING Group’s
Interhyp AG share of EUR 7 million.
Goodwill is tested for impairment at the lowest level at which it is monitored for internal management purposes (so called ‘reporting
units’). Goodwill is allocated to reporting units as follows:
Goodwill allocation to reporting units
2009 2008
Retail Banking – Central Europe 834 839
Retail Banking – South West Europe 49 49
Retail Banking – Netherlands 11
ING Direct 460 456
Commercial Banking Leasing & Factoring 66 61
Commercial Banking Real Estate 39 11
Commercial Banking Other 14 15
Insurance Europe – Benelux 48 49
Insurance Europe – Rest of Europe 122 124
Insurance Americas – Latin America 591 543
Insurance Americas – United States 483 501
Insurance Americas – Canada 71
Insurance Asia/Pacific – South Korea 171 164
Insurance Asia/Pacific – Rest of Asia 193 186
3,071 3,070
In 2008, as a result of the nationalisation of AFJP Pension in Argentina goodwill of EUR 155 million was written off.
2.1 Consolidated annual accounts
ING Group Annual Report 2009 125
Notes to the consolidated balance sheet of ING Group (continued)