14. Intangible assets

Accounting policy

Goodwill

All business combinations are accounted for using the acquisition method. Goodwill is the amount resulting from the acquisition of subsidiaries. Goodwill represents the difference between the cost of the acquisition and the fair value of the identifiable assets and liabilities acquired at the time of the acquisition. Goodwill is measured at cost less accumulated impairment.

Negative goodwill arising on an acquisition is recognised directly in the income statement.

Other intangible assets

Other intangible assets with a finite life acquired or produced by the Group are stated at cost less accumulated amortisation and accumulated impairment losses.

After initial recognition, expenditure on capitalised intangible assets is only capitalised if it leads to an increase in the future economic benefits embodied in the specific asset involved. All other expenditure, including internally generated goodwill and trademarks, is recognised as an expense in the income statement as incurred.

Amortisation is charged to the income statement on a straight-line basis over the estimated useful life of the intangible assets, except goodwill, from the date they are available for use. The estimated useful lives are as follows:

• Software 3–10 years