Barclays 2014 Annual Report Download - page 302

300 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
Non-current assets and other investments
23 Property, plant and equipment continued
Property rentals of £5m (2013: £70m) and £14m (2013: £38m) have been included in net investment income and other income respectively.
Impairment of £61m (2013: £86m) was charged including £38m in respect of premises relating to restructuring in Europe.
The fair value of investment property is determined by reference to current market prices for similar properties, adjusted as necessary for condition
and location, or by reference to recent transactions updated to reflect current economic conditions. Discounted cash flow techniques may be
employed to calculate fair value where there have been no recent transactions, using current external market inputs such as market rents and
interest rates. Valuations are carried out by management with the support of appropriately qualified independent valuers. Refer to Note 18 Fair
value of assets and liabilities for further details.
24 Goodwill and intangible assets
Accounting for goodwill and other intangible assets
Goodwill
The carrying value of goodwill is determined in accordance with IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures, and represents the excess of the fair value of the purchase
consideration over the fair value of the Group’s share of the assets acquired and the liabilities and contingent liabilities assumed on the date of
the acquisition.
Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred. The test
involves comparing the carrying value of goodwill with the present value of the pre tax cash flows, discounted at a rate of interest that reflects
the inherent risks, of the cash generating unit (CGU) to which the goodwill relates, or the CGU’s fair value if this is higher.
Intangible assets
Intangible assets other than goodwill are accounted for in accordance with IAS 38 Intangible Assets.
Intangible assets include brands, customer lists, internally generated software, other software, licences and other contracts and core deposit
intangibles. They are initially recognised when they are separable or arise from contractual or other legal rights, the cost can be measured
reliably and, in the case of intangible assets not acquired in a business combination, where it is probable that future economic benefits
attributable to the assets will flow from their use.
Intangible assets are stated at cost (which is, in the case of assets acquired in a business combination, the acquisition date fair value) less
amortisation and provisions for impairment, if any, and are amortised over their useful lives in a manner that reflects the pattern to which they
contribute to future cash flows, generally over 12 months-25 years.
Intangible assets are reviewed for impairment when there are indications that impairment may have occurred.
Goodwill
£m
Internally
generated
software
£m
Other
software
£m
Core
deposit
intangibles
£m
Brands
£m
Customer
lists
£m
Licences
and other
£m
Total
£m
2014
Cost
As at 1 January 2014 6,346 2,411 556 194 116 1,543 437 11,603
Additions and disposals 36 702 176 – – 123 7 1,044
Exchange and other movements (53) 127 (250) (8) (4) 55 3 (130)
As at 31 December 2014 6,329 3,240 482 186 112 1,721 447 12,517
Accumulated amortisation and impairment
As at 1 January 2014 (1,468) (999) (217) (85) (97) (799) (253) (3,918)
Disposals – 98 21 – – 14 2 135
Amortisation charge – (306) (19) (7) (18) (142) (30) (522)
Impairment charge – (74) (21) – – (5) – (100)
Exchange and other movements 26 24 42 4 4 (30) (2) 68
As at 31 December 2014 (1,442) (1,257) (194) (88) (111) (962) (283) (4,337)
Net book value 4,887 1,983 288 98 1 759 164 8,180
2013
Cost
As at 1 January 2013 6,585 1,844 478 243 149 1,638 476 11,413
Additions and disposals – 617 79 – – 36 6 738
Exchange and other movements (239) (50) (1) (49) (33) (131) (45) (548)
As at 31 December 2013 6,346 2,411 556 194 116 1,543 437 11,603
Accumulated amortisation and impairment
As at 1 January 2013 (1,379) (809) (158) (96) (111) (717) (228) (3,498)
Disposals – 52 – – – – 3 55
Amortisation charge – (241) (38) (9) (13) (144) (35) (480)
Impairment charge (79) (38) (19) – – – (3) (139)
Exchange and other movements (10) 37 (2) 20 27 62 10 144
As at 31 December 2013 (1,468) (999) (217) (85) (97) (799) (253) (3,918)
Net book value 4,878 1,412 339 109 19 744 184 7,685