Setting new standards - Friends Life

PARENT COMPANY ACCOUNTS
ABBREVIATIONS AND DEFINITIONS
Notes to the consolidated accounts continued
8. Administrative and other expenses
(a) Analysis of administrative and other expenses
2006 2005
£m £m
Amortisation of intangible assets 79 95
Impairment of intangible assets 58 112
Impairment of investment in associate - 4
Employee remuneration 184 183
Share based payments:
Equity-settled transactions 20 26
Cash-settled transactions 2 2
Auditors’ remuneration 9 17
Investment expenses and charges 118 91
Investment property expenses 5 5
Operating lease rentals:
Land and buildings 21 21
Equipment 4 4
Renewal commission 22 35
Office costs 12 13
Movement in provision for past sales 8 40
Sundry administrative expenses 76 111
Total administrative and other expenses 618 759
Sub-lease rentals of £2m (2005: £2m) were received during the year.
The categorisation of certain expenses has been amended in 2006 resulting in some reclassification of expenses reported in 2005.
(b) Auditors’ remuneration
At the Company’s Annual General Meeting held on 25 May 2006, the shareholders approved the reappointment of KPMG Audit Plc as auditor
to the Company and subsidiaries. On 20 October 2006, the directors of F&C approved the appointment of KPMG Audit Plc as auditor to F&C
Asset Management plc and its subsidiaries. Ernst & Young LLP were auditors to F&C Asset Management plc and its subsidiaries prior to this
date. The following tables give an analysis of the total fees excluding VAT in respect of services provided to the Group by each firm.
Information concerning the auditors’ appointment process is given in the Corporate Governance Report on pages 55 and 56.
Friends Provident Annual Report & Accounts 2006 93