The Group KD Group and KD Group dd

The Group KD Group Annual Report 2009
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009
2.6 Investment property
Investment property is property (land or a building, or part of a building, or both) held to earn rentals and/or for capital
appreciation or both, rather than for administrative purposes or sale in the ordinary course of business. Investment property is
initially measured at cost. After initial recognition, investment property of the Group is carried at its cost less accumulated
depreciation and accumulated impairment losses, if any (cost model), i.e. the same as property, plant and equipment. The
Group reviews once a year the proportion of investment property obtained by other companies in the Group under lease
agreements; in the consolidated balance sheet, the value of investmet property is recognised within the items of property,
plant and equipment.
The recognition and derecognition policies and methods of accounting for depreciation and impairment are defined under
property, plant and equipment. The costs of day-to-day servicing of the investment property (repairs and maintenance) are
expensed when incurred.
2.7 Intangible assets
After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated
impairment losses (cost model). An entity assesses whether the useful life of an intangible asset is finite or indefinite. If finite,
it is amortised over its useful life. An intangible asset with an indefinite useful life is not amortised.
Goodwill
Goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable assets,
liabilities and contingent liabilities of the acquired subsidiary, and is disclosed under intangible assets with an indefinite useful
life.
Goodwill on acquisition of subsidiaries is included in intangible assets and carried at cost less accumulated impairment
losses. Goodwill on acquisitions of associates is included in investments in associates. Separately recognised goodwill is
tested annually, and any impairment is recognised in the income statement. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Once a year
the adequacy of the goodwill is reviewed and any impairment loss is recognised in the profit and loss account. The reversal of
impairment of goodwill is not allowed. Gains and losses on disposal of subsidiaries also include the value of goodwill, which
refers to the disposed subsidiary.
Excess of fair value of the acquired identifiable assets, liabilities and contingent liabilities above the cost of their acquisition is
reassessed, and any excess remaining after the reassessment is recognised as income in the income statement.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. Goodwill is allocated to the Group’s cashgenerating
units that are expected to benefit from the synergies of the combination.
Other intangible assets
The Group’s intangible assets with a finite useful life include computer software and licences. The cost of acquired software
comprises the costs of acquisition and preparation of the asset for its intended use, and for licences it is the cost of
acquisition. Throughout the useful life of an individual item of an intangible asset the Group consistently allocates the amount
of its amortisation to individual accounting periods as amortisation at that time. Amortisation is calculated using the straightline
method.
Amortisation is charged individually. The periods of amortisation of intangible assets with a finite useful life are the following:
Intangible assets:
Licences
Computer software
3 to 5 years
3 to 5 years
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