Experian 2011 Annual Report Download - page 118

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116 Experian Annual Report 2011
Notes to the Group nancial statements continued
13. Exceptional items and total adjustments to Benchmark PBT - continuing operations (continued)
(b) Total adjustments to Benchmark PBT 2011
US$m
2010
(Re-presented)
(Note 3)
US$m
Amortisation of acquisition intangibles 129 140
Acquisition expenses 8 -
Charges in respect of the demerger-related equity incentive plans 13 28
Financing fair value remeasurements (note 14(c)) 142 18
Total adjustments to Benchmark PBT 292 186
Adjustments by income statement caption:
Labour costs 13 28
Depreciation and amortisation 129 140
Other operating charges 8-
Finance expense 142 18
Total adjustments to Benchmark PBT 292 186
IFRS requires that, on acquisition, specic intangible assets are identied and recognised separately from goodwill and then amortised
over their useful economic lives. These include items such as brand names and customer lists, to which value is rst attributed at the time of
acquisition. The Group has excluded amortisation of these acquisition intangibles from its denition of Benchmark PBT because such a charge
is based on judgments about their value and economic life.
IFRS 3 ‘Business Combinations’ now requires that acquisition expenses are charged to the Group income statement. The Group has excluded
such costs from its denition of Benchmark PBT as, by their very nature, they bear no relation to the underlying performance of the Group or to
the performance of the acquired businesses. These costs are recognised within other operating charges.
Charges in respect of demerger-related equity incentive plans relate to one-off grants made to senior management and at all staff levels at the
time of the demerger, under a number of equity incentive plans. The cost of these one-off grants is being charged to the Group income statement
over the ve years from demerger in October 2006, but excluded from the denition of Benchmark PBT. The cost of all other grants is being
charged to the Group income statement and included in the denition of Benchmark PBT.
An element of the Group’s derivatives is ineligible for hedge accounting under IFRS. Gains or losses on these derivatives arising from
market movements, together with gains and losses on put options in respect of acquisitions, are credited or charged to nancing fair value
remeasurements withinnance expense in the Group income statement.