Annual report 2011 - VTB

VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)16. Investment Property (continued)As at 31 December 2011 investment property was revalued by RUR 4.5 billion (in 2010 – decreased by RUR 0.2 billion).The valuation was carried out by the Group’s internal appraisers and by independent appraisers on the basis of marketprices for comparable real estate.In 2011 the Group received directly a property title for land plots and commercial and residential properties valued atRUR 3.9 billion (2010: RUR 12.3 billion) in exchange for settlement of the outstanding loans granted by the Group.The property of RUR 0.6 billion (2010: RUR 0.8 billion) was obtained through foreclosure of collateral under mortgageloans. The acquired investment properties were valued by an independent, professionally qualified appraiser at fairvalue at the acquisition date.In 2011, the Group’s investment property increased due to property valued at RUR 3.3 billion received a result ofacquisition of “Bank of Moscow”, OJSC (Note 42). The investment property for the amount of RUR 5.5 billion andRUR 1.9 billion was received by "Hals-Development", OJSC and "TransCreditBank", JSC, respectively, whenacquiring subsidiaries.In 2010, the Group’s investment property increased due to property valued at RUR 15.7 billion received a result ofacquisition of “M”, CJSC, “TransCreditBank”, JSC and “VTB Arena”, CJSC (Note 42).The Group leased out a portion of its investment property under operating lease. Future minimum receivables undernon-cancellable operating lease are RUR 2.0 billion (RUR 0.8 billion as of 31 December 2010) of whichRUR 0.6 billion to be received in less than one year and of which RUR 1.4 billion to be received later than one yearand not later than five years (2010: RUR 0.3 billion and RUR 0.5 billion, respectively).In 2011 the Group has recognized rental income as part of income arising from non-banking activities ofRUR 0.9 billion (2010: RUR 0.2 billion) and direct operating expenses of RUR 0.3 billion (2010: no material directoperating expenses) in relation to investment property that generated rental income.17. Intangible Assets and GoodwillThe movements in intangible assets were as follows in 2011:Core depositand customerloan intangibleComputersoftwareOtherrightsBrands andtrademarks Goodwill TotalNet book amount at 31 December 2010 5.0 3.0 2.6 – 19.9 30.5Cost less impairmentOpening balance at 1 January 2011 9.8 4.6 2.9 – 19.9 37.2Additions – 2.0 1.6 – – 3.6Acquisition through businesscombinations (Note 42) 25.4 0.3 0.3 1.5 84.8 112.3Disposals – (0.3) (0.8) – – (1.1)Write-offs through impairment – – (0.1) – – (0.1)Translation difference – (0.1) – – – (0.1)Transfer – – (0.3) – – (0.3)Closing balance at 31 December 2011 35.2 6.5 3.6 1.5 104.7 151.5Accumulated amortizationOpening balance at 1 January 2011 4.8 1.6 0.3 – – 6.7Amortization charge 1.9 0.9 1.2 – – 4.0Disposals – (0.4) – – – (0.4)Closing balance at 31 December 2011 6.7 2.1 1.5 – – 10.3Net book amount at 31 December 2011 28.5 4.4 2.1 1.5 104.7 141.234