Annual Report 2010 - Scana Industrier ASA

62Annual Report 2010 Scana Industrier ASAPatents and Development Customers/IIntangible assets 31.12.09 licences Goodwill costs order reserve TotalAcquisition costAccumulated 01.01 18 753 100 308 39 698 28 498 187 257Additions 162 0 3 789 0 3 951Additions from acquisition of business 0 20 590 3 382 7 014 30 986Translation differences -2 463 -6 885 -795 -316 -10 459Disposals 0 -1 790 -596 0 -2 386Accumulated 31.12. 16 452 112 223 45 478 35 196 209 349Accumulated 01.01Depreciation and write-downs for the year 3 263 17 745 18 465 15 985 55 458Translation differences 1 053 0 1 756 4 146 6 955Disposals -593 -337 -11 0 -941Avgang 0 -1 791 0 0 -1 791Accumulated 31.12 4 862 15 617 19 071 20 131 59 681Book value 31.12 11 590 96 606 26 407 15 065 149 668Depreciation period in no. of years 10 - 50 no depreciation 5* 5*) The straight-line depreciation method has been used. See below for further information.Patents and licences also include ownership rights/rights of useof an area of land in China. This right of use is amortised over thelease period of 50 years and has a book value as at 31.12.10 of NOK8.6 million.Customer relations and order reserves at the end of 2010 consistof valued customer relations with the acquisition of Scana Zamech,Scana Offshore Services. Customer relations are amortised overfive years. Added value related to the order reserve is depreciatedin accordance with the production period. At the end of 2010, thevalue related to the order reserve was amortised.Recognised development costs relating to the loading buoyproduced by Scana Offshore Vestby total NOK 15.4 million.These costs are amortised over five years. No depreciation wasundertaken in 2010. The Marine business area has book valuedevelopment costs equivalent to NOK 10 million linked to productdevelopment and increasing the efficiency of the production.Goodwill broken down into cash-generating units: 2010 2009Scana Steel Björneborg AB 1 565 1 565Leshan Scana Ltd 2 437 2 437Scana Zamech 20 224 20 634Scana Mar-El AS 1 076 1 076Scana Offshore Technology AS 3 053 3 053Scana Offshore Vestby AS 33 431 43 431Scana Offshore Services Inc. 24 807 24 410TOTAL 86 593 96 606Goodwill broken down by business area:Steel 4 003 4 002Marine 21 300 21 710Oil & Gas 61 290 70 894The group performs impairment tests on goodwill annually or moreoften if indications of a fall in value are present, by calculating utilityvalue. The calculations are based on the budget and businessplans determined by management for the period 2011–2015. Forsubsequent periods the model is based on a growth rate of 2%which is within Norges Bank’s expectations for future inflation. Theestimates are based on budgeting of the various cash generatingunits. Revenue is based on current contracts along with managementexpectations and external information with regards to potential newdeals. Estimated operating margin is expected to increase followingpositive market development. The estimates do not include additionsfor price increases. The group recognise impairment in the P&Lif the recoverable amount is less than booked assets or the cashgenerating unit. Goodwill has been written down with NOK 10 millionin 2010. The table below shows the key assumptions for impairmenttesting.