Aviva 2001 Annual Report Download - page 72

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17 – Goodwill
The carrying value of goodwill comprises:
Positive Negative Total Total
goodwill goodwill 2001 2000
£m £m £m £m
Cost:
At 1 January 933 (52) 881 495
Additions (16b) 496 – 496 364
Disposals (37) – (37) (13)
Foreign exchange rate movements (10) 10 –14
Other movements – – –21
At 31 December 1,382 (42) 1,340 881
Amortisation:
At 1 January 137 (3) 134 43
Charge in the year 76 (2) 74 92
Disposals (8) – (8) –
Foreign exchange rate movements (1) – (1) (1)
At 31 December 204 (5) 199 134
Carrying value at 31 December 1,178 (37) 1,141 747
Other movements in 2000 included adjustments to the fair value of acquisitions in 1999.
Goodwill is being amortised on a straight-line basis over its useful economic life. Useful economic lives have been determined in
respect of each acquisition to match the period over which the value of the underlying businesses will exceed the value of their
identifiable net assets. No useful economic lives are in excess of 20 years. As explained in accounting policy K on page 45, goodwill
arising in 1997 and prior years was charged directly to reserves.
18 – Land and buildings
The carrying value of land and buildings comprises:
Long-term business Non-long-term business Group
2001 2000 2001 2000 2001 2000
£m £m £m £m £m £m
Freeholds 6,276 6,041 759 787 7,035 6,828
Long leaseholds – over 50 years 1,877 1,933 22 29 1,899 1,962
Short leaseholds – under 50 years 31 32 76 4 107 36
8,184 8,006 857 820 9,041 8,826
The cost of land and buildings at 31 December 2001 was £7,211 million (2000: £7,299 million).The carrying value of land and buildings
occupied by the Group for its own activities was £554 million (2000: £580 million).
The valuation of properties has been undertaken by qualified external valuers or prepared or monitored by qualified members of staff
reporting to the Head of Property of Morley Fund Management Limited, who is a Fellow of The Royal Institution of Chartered
Surveyors, or by local qualified staff of the Group in overseas operations. All properties are valued at market value.
70 CGNU plc Annual report + accounts 2001 Notes to the accounts continued