UOB Annual Report 2002 - United Overseas Bank

(e)
Certain freehold and leasehold land and buildings of the Group and of the Bank are included on the basis of valuations made by
independent valuers with subsequent additions at cost. The dates of these valuations are as follows:
(i) The leasehold land at Bonham Street on which UOB Plaza 2 is sited April 1970
(ii) Certain freehold and leasehold land and buildings of Chung Khiaw Realty, Limited December 1969
(iii) Certain freehold land and buildings of United Overseas Bank (Malaysia) Bhd November 1965
(f)
Provisions for diminution in value are in respect of certain properties in Singapore, Malaysia, Hong Kong S.A.R., China, Thailand,
the Philippines and United Kingdom which are written down to their estimated market values as determined by the Bank’s
internal professionally qualified valuers.
35 Goodwill
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Balance at 1 January 3,776,651 – – –
Goodwill arising on acquisition of OUB – 3,824,457 – –
Transfer to the Bank on the merger of OUB
into the Bank
At cost – – 3,824,457 –
Accumulated amortisation – – (47,806) –
– – 3,776,651 –
Goodwill arising on acquisition of additional
shares in subsidiaries 110,482 – – –
Negative goodwill arising on acquisition of
additional shares in a subsidiary (25,533) – – –
Amortisation during the financial year (195,554) (47,806) (191,223) –
Balance at 31 December 3,666,046 3,776,651 3,585,428 –
Goodwill, at cost 3,909,406 3,824,457 3,824,457 –
Accumulated amortisation (243,360) (47,806) (239,029) –
3,666,046 3,776,651 3,585,428 –
36 Consolidation of Special Purpose Entity
A special purpose entity (“SPE”), Archer 1 Limited (“Archer”), which is incorporated in Singapore, has been consolidated in the
Group’s financial statements in accordance with Interpretation of Statement of Accounting Standard (“INT”) 5: Consolidation –
Special Purpose Entities, as the Bank has the majority residual benefits of Archer.
The principal activity of Archer is to carry on the business of investment holding, and for that purpose to issue notes and bonds
[Note 23(b)] and apply the proceeds from the notes and bonds towards the purchase of debt securities.
UNITED OVERSEAS BANK 137