ICICI Bank 2008 Annual Report Download - page 162

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Further, for certain acquisitions made by the Group, no goodwill has been accounted for under Indian GAAP primarily
due to accounting for the amalgamation by the pooling of interests method. However, under US GAAP, goodwill
has been accounted for in accordance with Statement No. 141 on “Business Combinations” and Statement No.
142 on “Goodwill and Other Intangible Assets”.
Under US GAAP subsequent to the adoption of Statement No. 142, the Group does not amortise goodwill and
intangibles with infinite life but instead tests the same for impairment at least annually. The annual impairment
test under Statement No. 142 does not indicate an impairment loss for fiscal 2008.
Under US GAAP, intangible assets are amortised over their estimated useful lives in proportion to the economic
benefits consumed in each period.
The estimated useful lives of intangible assets are as follows:
No. of years
Customer-related intangibles ................................................................... 10
Other intangibles ...................................................................................... 3 to 5
In fiscal 2008, the Group recorded goodwill under US GAAP of Rs. 5,465.9 million and intangible assets of
Rs. 1,175.0 million in relation to the acquisition of The Sangli Bank for a consideration of Rs. 2,964.2 million. The revenue
and total assets of the acquired group is immaterial to the consolidated results of operations and financial position
of the Group. The fair values of the net assets of The Sangli Bank as on the date of merger are as follows:
Rs. in million
Particulars
Assets
Cash and balances with RBI .................................................................... 999.6
Balances with banks and money at call and short notice ....................... 1,362.9
Investments.............................................................................................. 7,362.2
Advances .................................................................................................. 1,973.1
Fixed Assets ............................................................................................. 811.6
Other Assets ............................................................................................ 597.8
Total Assets.............................................................................................. 13,107.2
Liabilities
Deposits ................................................................................................... 13,129.2
Borrowings ............................................................................................... 8.8
Other Liabilities and Provisions ............................................................... 2,987.6
Total Liabilities ......................................................................................... 16,125.6
Net Assets ................................................................................................ (3,018.4)
c) Consolidation
The differences on account of consolidation are primarily on account of:
i) Consolidation of insurance subsidiaries.
ii) Equity affiliates and majority owned subsidiaries.
iii) Variable interest entities.
Under Indian GAAP, the Group has not consolidated certain entities in which control is intended to be temporary.
However under US GAAP, these entities have been consolidated in accordance with Statement No. 94 on
“Consolidation of majority owned subsidiaries” which requires consolidation of such entities.
Under Indian GAAP, consolidation is required only if there is ownership of more than one-half of the voting power
of an enterprise or control of the composition of the board of directors in the case of a group or of the composition
of the governing body in case of any other enterprise.
However, under US GAAP, the Group is required to consolidate entities deemed to be Variable Interest Entities
(VIEs) where the Group is determined to be the primary beneficiary under FIN 46(R).
The Group’s venture capital subsidiary is involved with entities that may be deemed VIEs. The FASB permitted
non-registered investment companies to defer consolidation of VIEs with which they are involved until the
proposed Statement of Position on the clarification of the scope of the Investment Company Audit Guide is
finalised. Following issuance of the Statement of Position, the FASB will consider further modification to FIN
46(R) to provide an exception for companies that qualify to apply the revised Audit Guide. Following issuance
of the revised Audit Guide and further modification, if any, to FIN 46(R), the Group will assess the effect of such
guidance on its venture capital business.
reconciliation to US GAAP and related notes
for the year ended March 31, 2008
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