DHL 1999 Annual Report Download - page 107

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118
Notes to the Consolidated Balance Sheet
(20) Intangible assets
In accordance with IAS 38 (Intangible Assets), pur-
chased intangible assets are recognized with their
purchase costs. Internally produced intangible assets
are recognized at manufacturing costs, provided the
assets criteria are met, especially if the intangible assets
are expected to generate future economic benefits.
Within the Group, this applies to Deutsche Post’s own
software developments. The manufacturing costs of the
self-produced software cover, besides single item costs,
adequate proportions of attributable manufacturing
overhead expenses.If debt financing costs arise,they are
not treated as a manufacturing cost element. Turnover
tax arising in connection with the acquisition or manu-
facturing of intangible assets is recognized under acqui-
sition and manufacturing costs to the extent that it
cannot be deducted as prior tax.
Intangible assets are amortized on a straight-line basis
over their estimated useful lives. Capitalized software is
amortized over 3 to 6 years, licenses are amortized
according to their terms.
Whenever there is an indication that the asset may be
impaired and the recoverable amount is below the
carrying amount, intangible assets are subject to special
amortization. If reasons for special amortization cease
to exist,the appropriate write-ups are performed.
In line with IAS 22 (Business Combinations), goodwill,
including goodwill resulting from capital consolidation,
is capitalized and amortized on a straight-line basis
over useful lives of 15 to 20 years. Useful lives of good-
will are primarily determined by the importance ofeach
acquisition to the corporate strategies with a view to
achieving synergy effects and opportunities of access-
ing new markets.The values of goodwill are reviewed at
regular intervals. If there is an indication that goodwill
may be impaired, it is subject to appropriate special
amortization.