Aviva 2013 Annual Report Download - page 159

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
157
Notes to the consolidated financial statements continued
17 – 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
2013
£m
2012
£m
Gross amount
At 1 January 2,774 2,850
Acquisitions and additions 6 1
Disposals1 (1,034) (13)
Foreign exchange rate movements 24 (64)
At 31 December 1,770 2,774
Accumulated impairment
At 1 January (1,071) (210)
Impairment losses charged to expenses (48) (891)
Disposals1 842 10
Foreign exchange rate movements (13) 20
At 31 December (290) (1,071)
Carrying amount at 1 January 1,703 2,640
Carrying amount at 31 December 1,480 1,703
Less: Assets classified as held for sale (4) (183)
Carrying amount at 31 December 1,476 1,520
1 Disposals include the disposal of the US business in 2013. Goodwill relating to US Life was fully impaired in 2012. Following the completion of the disposal, the gross amounts are removed from the above table in 2013 with no
impact on the statement of financial position.
Goodwill on acquisitions and additions arose on the acquisition of a small general insurance business in Canada and a small wealth
management business in Singapore.
Goodwill impairment charges of £48 million have been recognised in income statement (see (b) below). Together with
impairment charges of £29 million recognised in respect of goodwill within interests in associates (note 20), the total charge for
impairment of goodwill, joint ventures and associates for the year was £77 million.
Goodwill disposed of during the year relates to the Group’s US Life business, Aseval, a Spanish long-term business, and the
Russian long-term business (see note 4(b)). Goodwill classified as held for sale of £4 million relates to the Group’s Indonesian
business (see note 4(c)).
(b) Goodwill allocation and impairment testing
A summary of the goodwill and intangibles with indefinite useful lives allocated to cash-generating units is presented below.
Carrying amount of
g
oodwill
Carrying amount of
intangibles with indefinite
useful lives (detailed in
note 18) Total
2013
£m
2012
£m
2013
£m
2012
£m
2013
£m
2012
£m
United Kingdom
–
general insurance and health 924 924 — — 924 924
Ireland
–
general insurance and health 115 112 — — 115 112
France
–
long-term business — — 52 51 52 51
Poland
–
long-term business 9 9 — — 9 9
Italy
Long-term business 15 35 — — 15 35
General insurance and health 30 37 — — 30 37
Spain
–
long-term business 259 450 — — 259 450
Other Europe — 3 — — — 3
Aviva Investors 27 27 — — 27 27
Canada 49 50 — — 49 50
Asia 52 56 — — 52 56
1,480 1,703 52 51 1,532 1,754
Goodwill in all business units is tested for impairment by comparing the carrying value of the cash generating unit to which the
goodwill relates to the recoverable value of that cash generating unit. The recoverable amount is the value in use of the cash
generating unit unless otherwise stated.