Jupiter Annual Report 2010 - Jupiter Asset Management

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Financial statements – continuation | Notes to the financial statements 14. Goodwill Group On 19 June 2007, the Group acquired the entire share capital of Comasman Limited (formerly Commerz Asset Management (UK) plc) which gave rise to a goodwill asset being recognised. Goodwill arising on acquisition of Comasman Limited 2010 £m 2009 £m At 1 January 341.2 341.2 Total goodwill at 31 December 341.2 341.2 No additional goodwill was acquired in the period (2009: £nil). ■■Impairment review for goodwill The Group has determined that it has a single CGU for the purpose of assessing the carrying value of goodwill and intangible assets. The Directors have reviewed the total goodwill amount at 31 December 2010 for indicators of impairment and conclude that there are no indicators of impairment. The recoverable amount of goodwill at year end has been determined from a value in use calculation which uses a cash flow projection based on the Group’s approved three year forecast and a terminal value. The key assumptions include cost inflation of 2 per cent. per annum throughout and a discount rate of 9.32 per cent. per annum. The discount rate has been calculated using a CAPM and a WACC model in line with industry practice. The cash flow projection was also compared against external analyst models to ensure that assumptions were reasonable. The impairment review included a sensitivity analysis which concluded that the discount rate would need to reach 35.5 per cent. before the final value in use fell to equal the carrying value of goodwill. 15. Intangible assets Group Net carrying values of intangible assets 2010 £m 2009 £m Computer software 2.6 3.2 Investment management contracts and trade name arising on acquisition of Comasman Limited 139.8 178.5 Total intangible assets at 31 December 142.4 181.7 The intangible asset which relates to investment management contracts is amortised over seven years on a straight line basis from the date of acquisition of Comasman Limited on 19 June 2007. The Directors consider this to be an appropriate period. The intangible asset relating to the valuation of the trade name is being amortised on a straight line basis over ten years. The amortisation charge for the year was £39.8m for investment management contracts, brand name and software in the period (2009: £39.8m). No additional investment management contracts were acquired in the year (2009: £nil). ■■Test for impairment The Directors have reviewed the acquired intangible assets as at 31 December 2010 for indicators of impairment as per IAS 36 and have concluded that there are no indicators of impairment. Annual Report & Accounts 2010 76 Jupiter Fund Management plc
Financial statements – continuation | Notes to the financial statements 15. Intangible assets continued Investment management contracts and trade name arising on acquisition of Comasman Limited Cost 2010 £m 2009 £m At 1 January and at 31 December 276.7 276.7 Amortisation At 1 January 98.2 59.5 Amortisation charge 38.7 38.7 At 31 December 136.9 98.2 Net book value at 31 December 139.8 178.5 Computer software Cost 2010 £m 2009 £m At 1 January 5.8 5.2 Additions 0.5 0.6 Disposals – – At 31 December 6.3 5.8 Amortisation At 1 January 2.6 1.5 Amortisation charge 1.1 1.1 Disposals – – At 31 December 3.7 2.6 Net book value at 31 December 2.6 3.2 During the year, the Group acquired software with a value of £0.5m (2009: £0.6m). No disposals of software were made during the year. Annual Report & Accounts 2010 77 Jupiter Fund Management plc
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Jupiter Annual Report 2010 - Jupiter Asset Management

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