4.0 - Imperial

Notes to the group annual financial statements continued...
for the year ended 30 June 2009
4. Intangible assets
Computer
Other
Goodwill software intangibles Total
Rm Rm Rm Rm
For the year ended 30 June 2009
– Cost 1 158 264 105 1 527
– Accumulated impairment and amortisation 399 189 38 626
759 75 67 901
Net book value at beginning of year 770 46 81 897
Net acquisition (disposal) of subsidiaries and businesses 213 (1) 2 214
Additions 63 6 69
Proceeds on disposal (1) (1)
Impairment (costs) reversals (194) 2 (192)
Amortisation (44) (5) (49)
Currency adjustments (30) (7) (37)
Reclassification 17 (17)
Net book value at end of year 759 75 67 901
For the year ended 30 June 2008
– Cost 974 238 107 1 319
– Accumulated impairment and amortisation 204 192 26 422
770 46 81 897
Net book value at beginning of period 1 130 28 80 1 238
Net acquisition (disposal) of subsidiaries and
businesses (including unbundling) 36 (5) 31
Additions 46 8 54
Impairment costs (47) (47)
Amortisation (27) (4) (31)
Currency adjustments 106 4 2 112
Reclassified to assets held for sale (455) (5) (460)
Net book value at end of period 770 46 81 897
Goodwill impairment testing
Goodwill is allocated to cash generating units (CGUs) that are measured individually for the purposes of impairment testing.
A CGU represents the business operation from which goodwill was originally generated. The recoverable amount of a CGU is
determined being the higher of value in use, or the fair value less costs to sell method.
Value in use
Value in use is calculated using discounted cash flows. Cash flow projections are based on three to five year forecast information
approved by senior management. Cash flows beyond the initial period are extrapolated using average growth rates.
Discount and growth rates are used that are relevant to the particular industry and geographic location in which a CGU operates.
Fair value less costs to sell
Fair value less costs to sell is calculated with reference to publicly traded market prices.
Goodwill was tested for impairment and where the excess of the recoverable amount over the carrying value of the CGU in the group
amounts is less than the goodwill, then goodwill is impaired.
CGUs that are significant in relation to the group’s total goodwill carrying amount are outlined below.
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Imperial holdings limited Annual Report 2009