BT 2002 Annual Report Download - page 48

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of SFAS No. 141 will not have a material impact on BT's
results of operations, ®nancial position or cash ¯ows.
SFAS No. 142 ``Goodwill and Other Intangible Assets''
was also issued in July 2001. SFAS No. 142 is applicable to
®nancial years commencing after 15 December 2001.
SFAS No. 142 supersedes APB Opinion 17 ``Intangible
Assets'' and requires the discontinuance of the amortisation
of goodwill and intangible assets with inde®nite lives. These
assets will be subject to an impairment review at least
annually.
At 1 April 2002 BT has purchased goodwill of
£237 million which has been reviewed in accordance with
SFAS No. 142 and no impairment charge is required on
adoption of SFAS No. 142. This is being amortised over its
remaining useful life of 17 years in the UK GAAP ®nancial
statements.
In July 2001, the FASB also issued SFAS No. 143
``Accounting for Asset Retirement Obligations'' which is
applicable to ®nancial years commencing after 15 June
2002. SFAS No. 143 requires that the fair value of a liability
for an asset retirement obligation be recognised in the
period in which it is incurred if it is possible to make a
reasonable estimate of the fair value. The associated asset
retirement costs are required to be capitalised as part of the
carrying value of the long lived asset. The adoption of
SFAS No. 143 is not expected to have a material impact on
the consolidated ®nancial statements.
In August 2001, the FASB issued SFAS No. 144
``Accounting for the Impairment or Disposal of Long Lived
Assets'' which is applicable to ®nancial years beginning
after 15 December 2001. SFAS No. 144 supersedes
SFAS No. 121 ``Accounting for Long Lived Assets and for
Long Lived Assets to be Disposed Of''. The adoption of
SFAS No. 144 is not expected to have a material impact on
the consolidated ®nancial statements.
In April 2002, the FASB issued SFAS No. 145,
``Rescission of FASB Statements No. 4, 44, and 64,
Amendment of FASB Statement No. 13, and Technical
Corrections''. The Statement updates, clari®es and
simpli®es existing accounting pronouncements. BT is
currently evaluating the impact of this statement on its
consolidated ®nancial statements.
Financial review
BT Group Annual Report and Form 20-F 2002 47