Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Goodwill and intangible assets
Customer
Goodwill Software Other Related Total
E’000 E’000 E’000 E’000 E’000
At 1 January 2007
Cost ...................................... 54,826 1,279 530 — 56,635
Accumulated amortisation and impairment .......... — (1,013) (514) — (1,527)
Net book amount ............................ 54,826 266 16 — 55,108
Year ended 31 December 2007
Opening net book amount ...................... 54,826 266 16 — 55,108
Exchange differences .......................... — 21 2 — 23
Additions .................................. — 177 48 — 225
Arising on acquisitions ......................... 9,750 2,982 — 13,779 26,511
Amortisation charge .......................... — (728) (32) (2,297) (3,057)
Closing net book amount ....................... 64,576 2,718 34 11,482 78,810
At 1 January 2008
Cost ...................................... 64,576 4,459 580 13,779 83,394
Accumulated amortisation and impairment .......... — (1,741) (546) (2,297) (4,584)
Net book amount ............................ 64,576 2,718 34 11,482 78,810
Year ended 31 December 2008
Opening net book amount ...................... 64,576 2,718 34 11,482 78,810
Exchange differences .......................... (13,795) (63) (5) (1,079) (14,942)
Additions .................................. — 504 — — 504
Net transfers ................................ — 1,943 (26) — 1,917
Amortisation charge .......................... — (1,565) — (4,593) (6,158)
Closing net book amount ....................... 50,781 3,537 3 5,810 60,131
At 31 December 2008
Cost ...................................... 50,781 10,943 50 12,700 74,474
Accumulated amortisation and impairment .......... — (7,406) (47) (6,890) (14,343)
Net book amount ............................ 50,781 3,537 3 5,810 60,131
The useful lives of intangible assets other than goodwill are finite and range from 3 to 5 years.
Amortisation expense of A6,158,000 (2007: A3,057,000) has been charged in cost of sales.
Customer related intangible assets result from certain Rexam contractual customer relationships
valued at the acquisition date and are amortised over their estimated useful lives of 3 years. Software
assets relate to computer software, other than software for items of machinery that cannot operate
without that specific software and where such software is regarded as an integral part of the related
hardware. Such software and operating systems of computers are treated as an integral component of
the capitalised asset and classified as property, plant and equipment. Computer software assets have
estimated useful lives of 3 to 5 years for amortisation purposes.
No impairment losses have been recognised by the Group in respect of goodwill in the periods
presented.
F-32