Annual Report - VÚB banka

3.16 Intangible assets
Intangible assets are recorded at historical cost
less accumulated amortization and impairment
losses. Amortization is calculated on a straightline
basis in order to write off the cost of each asset
to its residual value over its estimated useful economic
life as follows:
acquisition and tested for impairment annually or
whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
Acquired intangible assets are amortized
using the straight line method over the estimated
useful economic lives as follows:
Years
Software 5
Other intangible assets 5
Years
Customer contracts and relationships 3 to 7
Brand names 8 to 9
Intangible assets acquired in a business combination
are capitalized at fair values as at the date of
Depreciation methods, useful lives and residual
values are reassessed at the reporting date.
3.17 Goodwill
Goodwill represents the excess of the cost of an
acquisition over the fair value of the Group’s share
of the identifi able assets, liabilities and contingent
liabilities of the acquired subsidiary at the date of
acquisition.
Goodwill is measured at cost less impairment, if
any. Goodwill is tested for impairment annually
or more frequently if events or changes in circumstances
indicate that the carrying amount may be
impaired.
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3.18 Property and equipment
Property and equipment are recorded at historical
cost less accumulated depreciation and impairment
losses. Acquisition cost includes the purchase
price plus other costs related to acquisition such
as freight, duties or commissions. The costs of expansion,
modernization or improvements leading
to increased productivity, capacity or effi ciency are
capitalized. Repairs and renovations are charged
to the income statement when the expenditure is
incurred.
Depreciation is calculated on a straight-line basis
in order to write off the cost of each asset to its
residual value over its estimated useful economic
life as follows:
Years
Buildings 5 - 40
Equipment 4, 6, 15
Other tangibles 4, 6, 15
Assets in progress, land and art collections are not
depreciated. Depreciation of assets in progress
begins when the related assets are put into use.
The VUB Group periodically tests its assets for impairment.
Where the carrying amount of an asset
is greater than its estimated recoverable amount, it
is written down to this recoverable amount. Where
assets are identifi ed as being surplus to the VUB
Group’s requirements, management assesses the
recoverable value by reference to a net selling price
based on third party valuation reports, adjusted
downwards for an estimate of associated sale
costs.
Depreciation methods, useful lives and residual
values are reassessed at the reporting date.
VUB, a bank of Intesa Sanpaolo group