Marks and Spencer 2012 Annual Report Download - page 97

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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 95
Overview Strategic review Financial review Governance Financial statements and other information
14 Intangible assets continued
Based on the above assumptions and due to the current economic environment in Greece and neighbouring countries, the
Marks and Spencer Marinopoulos B.V. goodwill has been impaired in full giving rise to a charge of £34.4m. This loss has been
recognised within selling and administration expenses in the Income statement. No other goodwill impairment charges have
been recognised in 2011/12 (last year £nil).
If a zero per cent growth rate is assumed or the discount rate is increased by a pre-tax rate of 2.0%, per una, Marks and
Spencer Czech Republic a.s. and Supreme Tradelinks Private Limited goodwill would not be impaired.
Brands consist of the per una brand cost of £80.0m and the M&S Mode brands which were purchased on 2 May 2011 for
£32.4m. The per una brand is a definite life intangible asset and is amortised on a straight line basis over a period of 15 years
and is only assessed for impairment where such indicators exist. The M&S Mode brands have been attributed an indefinite life
as they give the Group the future right to use the ‘M&S’ brand across Europe. This is consistent with the Group’s expansion
plans in Europe and existing M&S brand recognition from its current presence. Similar to goodwill, the M&S Mode brands are
assessed for impairment annually based on their value in use. The M&S Mode brands have been allocated for impairment testing
across the European business. No brand impairment charge has been recognised in 2011/12.
15 Property, plant and equipment
Land and buildings
£m
Fixtures,
fittings and
equipment
£m
Assets in the
course of
construction
£m
Total
£m
At 3 April 2010
Cost 2,576.4 5,043.9 121.2 7,741.5
Accumulated depreciation (118.7) (2,900.8) – (3,019.5)
Net book value 2,457.7 2,143.1 121.2 4,722.0
Year ended 2 April 2011
Opening net book value 2,457.7 2,143.1 121.2 4,722.0
Additions 23.1 173.1 168.8 365.0
Transfers 22.4 66.7 (89.1) –
Disposals (1.4) (1.3) – (2.7)
Asset write-offs – (3.4) – (3.4)
Depreciation charge (15.7) (400.8) – (416.5)
Exchange difference (0.1) (2.1) – (2.2)
Closing net book value 2,486.0 1,975.3 200.9 4,662.2
At 2 April 2011
Cost 2,730.0 5,263.2 200.9 8,194.1
Accumulated depreciation (244.0) (3,287.9) – (3,531.9)
Net book value 2,486.0 1,975.3 200.9 4,662.2
Year ended 31 March 2012
Opening net book value 2,486.0 1,975.3 200.9 4,662.2
Additions 17.1 279.5 282.7 579.3
Transfers 25.3 127.9 (153.2) –
Disposals (0.8) (6.8) – (7.6)
Asset write-offs (13.0) (10.4) – (23.4)
Depreciation charge (16.4) (388.4) – (404.8)
Exchange difference (9.4) (6.1) (0.3) (15.8)
Closing net book value 2,488.8 1,971.0 330.1 4,789.9
At 31 March 2012
Cost 2,759.4 5,612.9 330.1 8,702.4
Accumulated depreciation (270.6) (3,641.9) – (3,912.5)
Net book value 2,488.8 1,971.0 330.1 4,789.9
The net book value above includes land and buildings of £43.6m (last year £44.3m) and equipment of £26.4m (last year £31.8m)
where the Group is a lessee under a finance lease.
Additions to property, plant and equipment during the year amounting to £6.0m (last year £nil) were financed by new
finance leases.