Annual Report 2011 - Kongsberg Maritime - Kongsberg Gruppen

11
INTANGIBLE ASSETS
Amounts in MNOK Goodwill Technology
Development
costs
Other
intangible
assets Total
Cost of acquisition
1 Jan 2010 2 084 559 206 38 2 887
Additions - - 124 - 124
Additions through business combination 114 45 - 32 191
Translation differences 5 11 - - 16
Total acquisition cost 31 Dec 2010 2 203 615 330 70 3 218
Additions - 4 121 6 131
Additions through business combination 1) 210 42 1 12 265
Disposals - - - (30) (30)
Translation differences 5 5 - - 10
Total acquisition cost 31 Dec 2011 2 418 666 452 58 3 594
Accumulated amortisation
1 Jan 2010 419 185 62 12 678
Amortisation - 61 33 9 103
Disposals - - - - -
Translation differences 3 (2) - - 1
Total accumulated amortisation 31 Dec 2010 422 244 95 21 782
Amortisation - 58 32 7 97
Disposals - - - (30) (30)
Translation differences (2) 3 - - 1
Total accumulated amortisation 31 Dec 2011 420 305 127 (2) 850
- - - - -
Carrying amount 31 Dec 2010 1 781 371 235 49 2 436
Carrying amount 31 Dec 2011 1 998 361 325 60 2 744
Useful life 8-10 years 5 years 8-10 years
Remaining useful life 1-9 years 3-5 years 4-9 years
1) Business combinations mainly applies to the purchase of 100 per cent of the shares in Evotec AS og i Norspace AS. For preliminary purchase price allocation,
see Note 29 “Business combinations”.
With the exception of goodwill, which cannot be amortised, the amortisation of intangible assets is either linear over the useful life or based on the
number of units produced.
Development cost recognised in profit and loss
The major part of the Group’s development takes place through customer-financed projects.
Expenses related to own-financed development:
Amounts in MNOK
Product
maintenance
2011 2010
Development
costs Total
Product
maintenance
Development
costs Total
Kongsberg Maritime 117 450 567 103 384 487
Kongsberg Defence Systems 10 82 92 17 81 98
Kongsberg Protech Systems 78 47 125 79 11 90
Other 16 21 37 6 26 32
Total 221 600 821 205 502 707
Capitalisation development projects
Development projects financed by customers are not capitalised, but
Kongsberg seeks to obtain ownership rights to the product developed.
During the development phase in an equity-financed project, the
decision is taken whether to complete development and begin
capitalisation based on technical success and market assessments.
At Kongsberg Defence Systems the capitalisations are related to the
development of map systems.
At Kongsberg Protech Systems, capitalised development costs are
mainly related to the development of a new product concept in the
RWS family, the Medium Calibre RWS.
Equity-financed development projects at Kongsberg Maritime generally
consist of many projects, each of which has a limited overall scope.
These development projects are not considered to be eligible for
capitalisation. Many of the projects also entail considerable uncertainty
about whether they are technologically feasible and how the final
solution will turn out. As long as there is uncertainty about the final
technological solution, it is difficult to estimate market value.
Accordingly, the criteria for capitalisation will not be satisfied until fairly
late in the development project. Remaining expenses will often be
insignificant. Kongsberg Maritime is engaged in development projects in
the product area ‘dynamic positioning’ (DP), where the projects satisfy
the criteria and capitalisation has begun.
2 INTRODUCTION
7 DIRECTORS’ REPORT AND
18 FINANCIAL STATEMENTS
64 CORPORATE GOVERNANCE
76 FINANCIAL CALENDAR AND ADDRESSES
KONGSBERG Annual Report 2011 35