TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Goodwill
2010
Customer
relationships Brands
TDC Group Annual Report 2011
Other rights,
software,
etc. Total
Accumulated cost at 1 January 26,425 23,651 7,287 7,920 65,283
Transferred to discontinued operations (9,526) (5,211) (1,538) (1,521) (17,796)
Transfers (to)/from other items 0 (32) 0 32 0
Additions relating to the acquisition of enterprises 231 96 2 9 338
Additions 0 25 0 1,102 1,127
Assets disposed of or fully amortised (17) (4) 0 (353) (374)
Currency translation adjustments 115 68 11 21 215
Accumulated cost at 31 December 17,228 18,593 5,762 7,210 48,793
Accumulated amortisation and write-downs for
impairment at 1 January (1,299) (9,151) (658) (4,625) (15,733)
Transferred to discontinued operations 123 2,852 604 588 4,167
Transfers (to)/from other items 0 19 0 (19) 0
Amortisation 0 (1,783) (19) (801) (2,603)
Write-downs for impairment 0 (3) 0 (34) (37)
Assets disposed of or fully amortised 17 4 0 351 372
Currency translation adjustments
Accumulated amortisation and write-downs for
(95) (54) 0 (11) (160)
impairment at 31 December (1,254) (8,116) (73) (4,551) (13,994)
Carrying amount at 31 December 15,974 10,477 5,689 2,659 34,799
Carrying amount of capitalised interest at 31 December - 0 0 1 1
In 2011, write-downs for impairment of rights, software, etc. totalled DKK 7m. Of this, DKK 5m related to assets jointly
operated by Consumer, Business, Wholesale and Operations & HQ. The write-downs are due to termination of various
software projects.
In 2010, write-downs for impairment of rights, software, etc. totalled DKK 37m. Of this, DKK 34m related to assets jointly
operated by Consumer, Business, Wholesale and Operations & HQ. The write-downs were due to termination of various
software projects.
The carrying amount of software amounted to DKK 1,475m, compared with DKK 1,342m in 2010. In 2011, the addition of
internally developed software totalled DKK 139m, compared with DKK 99m in 2010. The carrying amount of Danish mobile
licenses included in Other rights, software etc. amounted to DKK 1,019m, compared with DKK 1,106m in 2010.
Interest capitalised during 2011 amounted to DKK 0m, compared with DKK 1m in 2010.
Impairment tests of goodwill and intangible assets with indefinite useful lives
The carrying amount of goodwill is tested for impairment annually and if events or changes in circumstances indicate
impairment. The annual tests were carried out at 1 July 2011 and 1 July 2010, respectively. The annual test in 2012 is
expected to be carried out at 1 October 2012 due to a change in the Group’s budget and planning process.
The test at 1 July 2011 did not identify any impairment.
The impairment test is an integral part of the Group’s budget and planning process that is based on three-year business
plans. The discount rates applied reflect specific risks relating to the individual cash-generating unit. The recoverable amount
131