BT 2010 Annual Report Download - page 114

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FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
112 BT GROUP PLC ANNUAL REPORT & FORM 20-F
12. Intangible assets
Brands,
Telecommunication customer Internally
licences and relationships developed Computer
Goodwill other and technology software software Total
£m £m £m £m £m £m
Cost
At 1 April 2008 1,088 266 248 1,896 1,281 4,779
Additions – – – 712 127 839
Acquisitions through business combinations 131 – 46 – – 177
Disposals and adjustments 1 (3) 20 (225) (12) (219)
Impairmentsa– – (26) (48) (261) (335)
Exchange differences 269 44 88 13 69 483
At 1 April 2009 1,489 307 376 2,348 1,204 5,724
Additions – – – 585 44 629
Acquisitions through business combinationsc1 – –––1
Interest on qualifying assetsb– – –2–2
Disposals and adjustments (2) (6) (3) (362) 9 (364)
Exchange differences (56) (11) (16) (5) (16) (104)
At 31 March 2010 1,432 290 357 2,568 1,241 5,888
Amortisation
At 1 April 2008 121 67 520 716 1,424
Charge for the year 14 62 433 132 641
Disposals and adjustments (1) – (225) (9) (235)
Exchange differences 22 24 11 49 106
At 1 April 2009 156 153 739 888 1,936
Charge for the year 15 54 559 107 735
Disposals and adjustments (4) (1) (366) (53) (424)
Exchange differences (5) (9) (5) (12) (31)
At 31 March 2010 162 197 927 930 2,216
Carrying amount
At 31 March 2010 1,432 128 160 1,641 311 3,672
At 31 March 2009 1,489 151 223 1,609 316 3,788
aImpairment charges of £335m were recognised in 2009, comprising BT Global Services restructuring charges of £81m, BT Global Services contract and financial review charges of £241m (see note 3) and
£13m in relation to the review of the 21CN programme and associated voice strategy. All impairment losses were recognised in the income statement. The recoverable amount of the impaired assets was
equal to their value in use.
bAdditions to internally generated software in 2010 includes interest capitalised at a weighted average borrowing rate of 7.9%.
cAdditional earnout payment in respect of investment in BT Leasing Limited.
Goodwill impairment review
The group performs an annual goodwill impairment review, based on its cash generating units (CGUs). The CGUs that have associated
goodwill are BT Global Services and the following business units within BT Retail: BT Consumer, BT Business, BT Ireland and BT Enterprises.
These are the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other
groups of assets, and to which goodwill is allocated. Goodwill is allocated to the group’s CGUs as follows:
BT Retail
BT Global
Services BT Consumer BT Business BT Ireland BT Enterprises Total
£m £m £m £m £m £m
At 1 April 2008 936 47 34 16 55 1,088
Acquisitions through business combinations 37 10 10 – 74 131
Disposals, adjustments and reclassifications 1 ––––1
Exchange differences 252 – – – 17 269
At 1 April 2009 1,226 57 44 16 146 1,489
Acquisitions through business combinations 1 ––––1
Disposals, adjustments and reclassifications (3) 8 17 5 (29) (2)
Exchange differences (52) – – – (4) (56)
At 31 March 2010 1,172 65 61 21 113 1,432