ING Direct 2008 Annual Report Download - page 120

2.1 Consolidated annual accounts
Notes to the consolidated balance sheet of ING Group (continued)
9 INTANGIBLE ASSETS
Changes in intangible assets
Value of
business acquired Goodwill Software Other Total
2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Opening balance 2,301 2,641 2,245 305 472 377 722 199 5,740 3,522
Additions (bought) 93 1,329 2,040 213 215 244 170 1,786 2,518
Capitalised expenses 98 420 124 518 124
Amortisation –298 –229 –173 –221 –157 –18 –628 –468
Impairments –155 –27 –14 –44 –1 –226 –15
Effect of unrealised
revaluations in equity 555 32 555 32
Changes in the
composition of the
group –730 25 –3 –28 59229 390 –499 396
Exchange rate
differences 158 –261 –340 –71 –17 –5 –113 –18 –312 –355
Disposals –6 –1 –12 –13 –1 –19 –14
Closing balance 2,084 2,301 3,070 2,245 881 472 880 722 6,915 5,740
Gross carrying amount
as at 31 December 2,980 2,946 3,225 2,245 1,988 1,379 1,125 766 9,318 7, 33 6
Accumulated
amortisation as at
31 December –896 –645 –1,051 –878 –200 –43 –2,147 –1,566
Accumulated
impairments as at
31 December –155 –56 –29 –45 –1 –256 –30
Net book value 2,084 2,301 3,070 2,245 881 472 880 722 6,915 5,740
Amortisation of software and other intangible assets is included in the profit and loss account in Other operating expenses and Intangible
amortisation and other impairments. Amortisation of VOBA is included in Underwriting expenditure.
Additions to goodwill in 2008 include mainly EUR 371 million related to the acquisition of Interhyp AG, EUR 462 million related to the
acquisition of CitiStreet, EUR 285 million related to the acquisition of the pension business of Santander Chile, EUR 69 million related to
the acquisition of Oyak Emeklilik and EUR 9 million related to the acquisition of Universal Lease Iberia. The additions to Other intangibles
in 2008 includes EUR 31 million related to the acquisition of the pension business of Santander Chile and EUR 73 million related to the
acquisition of CitiStreet. Reference is made to Note 29 ‘Companies acquired and companies disposed’. The additions to Other intangibles
also include EUR 50 million related to Interhyp AG.
Goodwill is tested for impairment at the lowest level at which it is monitored for internal management purposes (so called ‘reporting
units’). Goodwill is allocated to reporting units as follows:
Goodwill allocation to reporting units
2008 2007
Insurance Americas – Latin America 543 473
Insurance Americas – United States 501
Insurance Americas – Canada 71 84
Insurance Asia/Pacific – South Korea 164 107
Insurance Asia/Pacific – Rest of Asia 186 224
Insurance Europe – Benelux 49 49
Insurance Europe – Rest of Europe 124 54
Retail Banking – Central Europe 839 1,015
Retail Banking – South West Europe 49 49
Retail Banking – Netherlands 1
ING Direct 456 94
Wholesale Banking Leasing & Factoring 61 65
Wholesale Banking Real Estate 11 16
Wholesale Banking Other 15 15
3,070 2,245
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