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Notes to the Company financial statements continued
For the year ended 31 December 2013
All amounts are stated in £m unless otherwise indicated
10. Intangible fixed assets
2013
Internally
generated
intangible
assets
Other
intangible
assets
Total
Restated
2012
Internally
generated
intangible
assets
Other
intangible
assets
Cost
At the beginning of the year (as reported) 1 10.0 46.0 56.0 12.1 46.0 58.1
Total
At the beginning of the year restated 438.4 46.0 484.4 364.2 46.0 410.2
Additions 13.5 – 13.5 76.5 – 76.5
Disposals (0.5) – (0.5) (2.3) – (2.3)
At the end of the year 451.4 46.0 497.4 438.4 46.0 484.4
Accumulated amortisation and
impairment
At the beginning of the year (as reported) 1 6.7 15.5 22.2 8.0 10.8 18.8
At the beginning of the year restated 206.8 15.5 222.3 41.3 10.8 52.1
Charge for the year 19.2 4.5 23.7 17.8 4.7 22.5
Impairment 140.0 2.0 142.0 150.0 – 150.0
Disposals (0.5) – (0.5) (2.3) – (2.3)
At the end of the year 365.5 22.0 387.5 206.8 15.5 222.3
Net book value
At the end of the year 85.9 24.0 109.9 231.6 30.5 262.1
At the beginning of the year 231.6 30.5 262.1 322.9 35.2 358.1
Internally generated intangible assets consist of software development costs. Acquired computer software licences are capitalised on the basis of cost incurred
to acquire and bring the software to use.
Other intangible assets consist of a core deposit intangible of £24.0m (2012: £28.5m) and a brand intangible of £nil (2012: £2.0m). The brand intangible was
fully impaired in the year.
Internally generated assets include £83.8m (net book value) (2012: £228.3m) of assets for which the Company does not hold legal title, but the Directors are
of the opinion that the assets meet the accounting criteria of an asset for the Company. The assets are therefore accounted for on the Company’s balance sheet.
CFS Management Services (a subsidiary of The Co-operative Banking Group) holds legal title to these assets. The Company’s relationship with CFS
Management Services is described in note 39 to the Bank financial statements.
Internally generated assets include £8.5m (2012: £125.0m) of assets in the course of construction.
The Directors consider accounting for assets held by CFSMS a critical accounting judgment. Further details are provided in note 2 to the Bank
financial statements.
The total impairment charge for internally generated intangibles (shown above), assets in the course of construction and computers and other equipment
(shown in property, plant and equipment) is £151.3m, which consists of £148.4m regarding the development of new banking systems and £2.9m of other
impairment (included in operating expenses).
1. The 2012 comparatives have been restated as described in note 1.
The Co-operative Bank plc Annual report and accounts 2013
235