UBI Banca Group

13.2 Annual changes in intangible assets
Goodwill
Other intangible assets: internally
generated
Finite useful life
Indefinite useful
life
Other intangible assets: other
Finite useful life
Indefinite useful
life
Balances as at
31/12/2011
A Opening gross balances 4,605,452 4,358 - 1,331,716 37 5,941,563
A.1 Total net reductions in value ( 188,792) ( 3,949) - ( 273,437) - ( 466,178)
A.2 Net opening balances 4,416,660 409 - 1,058,279 37 5,475,385
B. Increases - - - 64,503 - 64,503
B.1 Purchases - - - 64,502 - 64,502
B.2 Increases in intangible internal assets X - - - - -
B.3 Reversal of impairment losses X - - - - -
B.4 Positive changes in fair value - - - - - -
- in equity X - - - - -
- in the income statement X - - - - -
B.5 Positive exchange rate differences - - - - - -
B.6 Other changes - - - 1 - 1
C. Decreases ( 1,877,992) ( 160) - ( 674,067) - ( 2,552,219)
C.1 Sales ( 4,143) - - - - ( 4,143)
C.2 Impairment losses ( 1,873,849) ( 160) - ( 672,448) - ( 2,546,457)
- Amortisation X ( 160) - ( 125,765) - ( 125,925)
- Impairment losses ( 1,873,849) - - ( 546,683) - ( 2,420,532)
+ equity X - - - - -
+ income statement ( 1,873,849) - - ( 546,683) - ( 2,420,532)
C.3 Negative changes in fair value - - - -
- in equity X - - - - -
- in the income statement X - - - - -
C.4 Transfers to non current assets held for sale. - - - - - -
C.5 Negative exchange rate differences - - - - - -
C.6 Other changes - - - ( 1,619) - ( 1,619)
D. Final net balances 2,538,668 249 - 448,715 37 2,987,669
D.1 Total net impairment losses ( 180,528) ( 4,109) - ( 857,107) - ( 1,041,744)
E. Final gross balances 2,719,196 4,358 - 1,305,822 37 4,029,413
F. Value at cost - - - - - -
13.3 Other information
Software
The useful life of software considered for the purposes of amortisation is three years.
Contracted commitments to purchase intangible assets amounted to €17,667 thousand for the
acquisition of software.
Impairment tests on goodwill
Frequency
The carrying amount for goodwill is tested systematically, at least annually, for impairment as
described in Part A.2 of the notes to the financial statements. In 2011, goodwill was tested for
impairment both as at 30 th June 2011, following the approval of the 2011-2015 Business Plan,
and as at 31 st December 2011.
Impairment procedure and cash flows used for the test
The impairment test was conducted with the assistance of an outside expert of high standing
on the basis of a procedure which was approved (prior to the examination of the financial
statements) by the Management Board on 21 st February 2012 and submitted to the
Supervisory Board on 7 th March 2012. The Management Board considered it prudent not to
use the figures for the 2011-2015 Business Plan, approved in May 2011 and used for the
impairment test performed as at 30 th June 2011, because the assumptions underlying that
plan had been formulated in an environment prior to the rapid deterioration of financial and
conditions that occurred in the second half of 2011, which led to the following: a general rise
in spreads, the closure of some conventional financial markets and a compression of interest
rates together with competitive pressures on normal funding. This was then added to with
intervention by the EBA, which issued a recommendation on 8 th December 2011 concerning
the capital of banks, designed to strengthen their capital position through the constitution of
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