Peachtree 2012 Annual Report Download - page 96

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Operating assets and liabilities
5 Intangible assets
5.1 Goodwill
Note
2012
£m
2011
£m
Cost at 1 October 1,736.3 2,031.1
– Additions 16.9 150.0 0.7
– Disposals 16.9 –(1.3)
– Reclassification to assets held for sale 15.4 –(304.6)
– Exchange movement (71.9) 10.4
At 30 September 1,814.4 1,736.3
Impairment at 1 October ––
– Impairment in the year 15.2 –(121.5)
– Reclassification to assets held for sale 15.4 –121.5
At 30 September ––
Net book amount at 30 September 1,814.4 1,736.3
Details of acquisitions and disposals in the year are shown in note 16. During the year, goodwill was reviewed for impairment in accordance with IAS 36. For the
purposes of this impairment review, goodwill for continuing operations has been valued on the basis of discounted future cash flows arising in each relevant
cash-generating unit.
In the prior year an agreement to sell Sage Software Healthcare, LLC was reached, resulting in an impairment loss on goodwill of £121.5m.
Goodwill impairment tests
Goodwill acquired in a business combination is allocated to one or more cash-generating units (“CGUs”). CGUs represent the operations of a country or, in more
material operations, divisions within a country.
During the year new CGUs were created for Brazil, Sage Pay Europe (previously reported in UK & Ireland) and Portugal (previously reported in France). The
following table shows the allocation of the carrying value of goodwill at the end of the reporting period by CGU:
2012
£m
2011
£m
France 253.7 272.6
UK & Ireland 195.4 195.3
Spain 124.2 134.2
Sage Pay Europe 27.4 17.0
Germany 25.2 27.2
Switzerland 33.6 35.9
Poland 6.4 6.5
Portugal 4.7 5.1
North America
– Sage Business Solutions Division 765.2 793.7
– Sage Payment Solutions Division 156.6 160.6
Brazil 133.5 –
South Africa 44.0 42.4
Australia 24.2 25.7
Asia 20.3 20.1
1,814.4 1,736.3
The main movement in goodwill by CGU was the acquisition of Folhamatic Tecnologia em Sistemas S.A. (“Folhamatic”) in Brazil; the majority of all other
movements compared to prior year were due to the impact of foreign currency exchange movements.
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