Aviva 2009 Annual Report Download - page 178

176
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
15 – Dividends and appropriations
This note analyses the total dividends and other appropriations we have paid during the year. The table below does not include the
final dividend proposed after the year end because it is not accrued in these financial statements. The impact of shares issued in
lieu of dividends is shown separately in note 35.
2009 2008
£m £m
Ordinary dividends declared and charged to equity in the year
Final 2008 – 19.91 pence per share, paid on 15 May 2009 527 —
(Final 2007 – 21.10 pence per share, paid on 16 May 2008) — 554
Interim 2009 – 9.00 pence per share, paid on 17 November 2009 248 —
(Interim 2008 – 13.09 pence per share, paid on 17 November 2008) — 348
775 902
Preference dividends declared and charged to equity in the year 17 17
Coupon payments on direct capital instrument 61 56
853 975
Subsequent to 31 December 2009, the directors proposed a final dividend for 2009 of 15.0 pence per ordinary share (2008: 19.91
pence)
, amounting to £415 million (2008: £527 million) in total. Subject to approval by shareholders at the AGM, the dividend will
be paid on 17 May 2010 and will be accounted for as an appropriation of retained earnings in the year ending 31 December 2010.
Interest on the direct capital instrument issued in November 2004 is treated as an appropriation of retained profits and,
accordingly, it is accounted for when paid. Tax relief is obtained at a rate of 28.0%
(2008: 28.5%) .
16 – Goodwill
This note analyses the changes to the carrying amount of goodwill during the year, and details the results of our impairment
testing on both goodwill and intangible assets with indefinite lives.
(a) Carrying amount
2009 2008
£m £m
Gross amount
At 1 January 3,898 3,273
Acquisitions (note 3a) 5 106
Fair value adjustments and movements in contingent consideration (note 3a) 48 (59)
Disposals (9) (84)
Transfers from other intangibles — 11
Amounts expensed in the year (see (b)(i) below) (30) —
Foreign exchange rate movements (245) 651
At 31 December 3,667 3,898
Accumulated impairment
At 1 January (315) (191)
Impairment losses charged to exceptional items — (20)
Other impairment losses charged to expenses — (48)
Write back of impairment related to disposals 3 9
Foreign exchange rate movements 26 (65)
At 31 December (286) (315)
Carrying amount at 1 January 3,583 3,082
Carrying amount at 31 December 3,381 3,583
Less: Amounts classified as held for sale — (5)
3,381 3,578
As explained in (b)(i) below, an amount of £30 million related to the recognition of a deferred tax asset previously recognised in
goodwill has been expensed in the year. Together with impairment charges of £32 million recognised in respect of goodwill within
interests in associates (note 19), the total goodwill write down for the year is £62 million.
Movements in contingent consideration relate to contingent consideration paid/received in respect of past acquisitions of
subsidiaries. Goodwill arising on acquisitions completed before 1 January 1998 was charged directly to reserves. Goodwill arising
on the Group’s acquisition of joint ventures and associates is included within the carrying value of those investments (see notes
18 and 19).