BT 1999 Annual Report Download - page 74

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NOTES TO THE FINANCIAL STATEMENTS
73
Gross book Net book
value Amortisation value
17. Intangible assets £m £m £m
))))))))))))0111!!!0111!!!0111
At 1 April 1998 – – –
Additions 742 – 742
Charge for the year – – –
00000000000511!!!0111!!!0111!!!0111
At 31 March 1999 742 – 742
00000000000511!!!0111!!!0111!!!0111
In September 1998, the group acquired MCI’s 24.9% interest in Concert Communications Company (Concert) for £607m. Goodwill
of £568m arose on this transaction. This goodwill has not been amortised and Concert is to be transferred into the proposed
global venture with AT&T Corp in the year ending 31 March 2000 at a value higher than its current book value including this
goodwill. Amortisation for the period would not be material.
The acquisition of the interests in Concert on 15 September 1998, Martin Dawes Telecommunications (MDT) on 8 March 1999 and
other subsidiary companies and the consideration given comprised:
Concert MDT Other Total
£m £m £m £m
))))))))))!!!!0111!!!0111!!!0111!!!0111
Minority interest 39 – 14 53
Fixed assets 34 1 35
Current assets 101 1 102
Current liabilities (152) (3) (155)
Long-term liabilities (3) – (3)
00000000001!!!0111!!!0111!!!0111!!!0111
Group share of original book value of net assets (liabilities) 39 (20) 13 32
Fair value adjustment to achieve consistency of accounting policies – (9) – (9)
00000000001!!!0111!!!0111!!!0111!!!0111
Fair value to the group 39 (29) 13 23
Goodwill 568 160 14 742
00000000001!!!0111!!!0111!!!0111!!!0111
Total cost 607 131 27 765
0000000000001011!!!0111!!!0111
Consideration:
Cash 607 41 19 667
Deferred – – 8 8
Loan notes 1999/2006 – 90 – 90
0000000000001011!!!0111!!!0111
Total 607 131 27 765
0000000000001011!!!0111!!!0111
MDT’s profit after tax for the year to 31 December 1998 was £2m.
Assets in
Land and Plant and course of
buildings (a) equipment construction Total
18. Tangible fixed assets £m £m £m £m
))))))))))!!!!0111!!!0111!!!0111!!!0111
Group
Cost
Balances at 1 April 1998 2,862 28,679 974 32,515
Acquisitions of subsidiary undertakings 3 21 13 37
Additions 23 1,099 2,162 3,284
Transfers 205 1,814 (2,019) –
Disposals and adjustments (94) (1,640) (9) (1,743)
00000000001!!!0111!!!0111!!!0111!!!0111
Total cost at 31 March 1999 2,999 29,973 1,121 34,093
00000000001!!!0111!!!0111!!!0111!!!0111
Depreciation
Balances at 1 April 1998 1,329 14,002 – 15,331
Acquisitions of subsidiary undertakings – 11 – 11
Charge for the year 117 2,464 – 2,581
Disposals and adjustments (71) (1,560) – (1,631)
00000000001!!!0111!!!0111!!!0111!!!0111
Total depreciation at 31 March 1999 1,375 14,917 – 16,292
00000000001!!!0111!!!0111!!!0111!!!0111
Net book value at 31 March 1999 1,624 15,056 1,121 17,801
Engineering stores – – 53 53
00000000001!!!0111!!!0111!!!0111!!!0111
Total tangible fixed assets at 31 March 1999 1,624 15,056 1,174 17,854
00000000001!!!0111!!!0111!!!0111!!!0111
Net book value at 31 March 1998 1,533 14,677 974 17,184
Engineering stores – – 68 68
00000000001!!!0111!!!0111!!!0111!!!0111
Total tangible fixed assets at 31 March 1998 1,533 14,677 1,042 17,252
00000000001!!!0111!!!0111!!!0111!!!0111