2009 - Jaarverslag

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSOther intangible fixed assetsOther intangible fixed assets acquired by the Group relate to customer relationships, trademark rights, patentsand similar rights. These intangible assets are valued at cost less accumulated amortisation and impairments(see note 23). Costs of internally generated goodwill and trademarks are stated as an expense in the statementof comprehensive income when they are incurred.18.3 Expenses after first-time inclusionExpenses after the first-time inclusion of capitalised intangible fixed assets are capitalised only if they lead toan increase in the future economic benefits embodied in the particular asset to which they relate. All otherexpenses are charged to the statement of comprehensive income when they are incurred.18.4 AmortisationAmortisation is calculated on the cost of the asset, or other amount replacing the cost, less the residual value.Amortisation costs are charged on a straight-line basis to the statement of comprehensive income in accordancewith the estimated useful life of intangible fixed assets. Goodwill is tested each year on the reporting date toassess whether any impairment has arisen. The amortisation of other intangible fixed assets begins as soon asthe assets are available for use.The amortisation method, economic life and residual value are assessed periodically.The estimated economic life is as follows:◾ Development costs 5 years◾ Other intangible fixed assets 3 – 14 years19 TANGIBLE FIXED ASSETS19.1 Owned assetsTangible fixed assets are valued at cost less accumulated depreciation (see 19.4) and impairments (seenote 23).The cost of self-manufactured assets comprises material costs, direct labour costs and an appropriate portion ofdirectly attributable overheads. The financing costs relating to the construction or purchase of an asset are alsoincluded in the determination of the cost.Where tangible fixed assets consist of components with differing useful lives, these are stated as separateitems under tangible fixed assets.19.2 Leased assetsLeases in which the Group actually assumes all the risks and benefits of ownership are classified as financialleases. Tangible fixed assets which are required by means of financial leases are valued at the lower of fairvalue and the discounted value of the minimum lease payments at the inception of the lease, less accumulateddepreciation (see note 19.4) and impairments (see note 23). Lease payments are stated as described in note 12.98Royal Ten Cate Annual Report 2009