Annual Financial Statements 2011 of Bank Austria

Consolidated Financial Statements in accordance with IFRSs
A – Accounting policies (CoNTINuED)
A.6 – Impairment test
Goodwill: annual changes (€ m)
2011 2010
Opening balance 3,225 3,415
Goodwill arising out of acquisitions made in the year – –
Permanent reductions (impairment) –737 –378
Disposals – –
Net exchange differences – 91 184
Transfer to/from non-current assets held for sale – –
Other changes – 4
closing balance 2,397 3,225
The main changes in accumulated goodwill in 2011 were:
• Impairment loss on goodwill relating to JSC ATF Bank, Kazakhstan: € 350 m
• Impairment loss on goodwill relating to PJSC Ukrsotsbank, Ukraine: € 329 m
• Impairment loss on goodwill relating to UniCredit Securities International Limited, Cyprus: € 42 m and CJSC UniCredit Securities (previously ATON): € 5 m
• Net exchange differences due to currency depreciation: – € 91 m
In compliance with IFRS 3 and in conjunction with IAS 36 and IAS 38 the carrying amount of goodwill or intangible assets with indefinite useful lives
allocated to cash-generating units (CGUs) was tested for impairment as at 31 December 2011.
The cash-generating unit is defined as the lowest level within the Group at which goodwill is allocated for management purposes. Goodwill recognised
is an intangible asset representing the future economic benefits arising from those assets acquired in a business combination which are not individually
identified.
In Bank Austria, business segments defined for segment reporting purposes are presented as cash-generating units. Within a business segment, significant
legal entities or all entities in a specific country are considered to be separate cash-generating units. In accordance with IAS 36, an impairment
test of the ATF brand name was carried out as part of the impairment test of the Kazakhstan CGU.
Impairment test – cash-generating units (€ m)
gOOdWill
2011 2010
Other
iNtaNgibles *) tOtal gOOdWill
Other
iNtaNgibles 1) tOtal
retail – – – – – –
private banking 39 – 39 39 – 39
Schoellerbank 39 – 39 39 – 39
corporate & investment banking – – – 51 – 51
Russia – – – 51 – 51
central eastern europe 2,321 50 2,371 3,088 76 3,164
eu member states
Bulgaria 159 – 159 159 – 159
Czech Republic 308 – 308 311 – 311
Hungary 118 – 118 118 – 118
Romania 137 – 137 139 – 139
Slovakia 88 – 88 88 – 88
Other
Bosnia 39 – 39 39 – 39
Croatia 50 – 50 52 – 52
Kazakhstan 129 50 179 481 49 530
Russia 767 – 767 785 – 785
Serbia 20 – 20 20 – 20
Turkey 338 – 338 399 – 399
Ukraine 168 – 168 497 28 525
corporate center 37 – 37 47 – 47
tOtal 2,397 50 2,447 3,225 76 3,301
*) Indefinite useful life
Bank Austria · Annual Financial Statements 2011
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