Full Annual Report - Inchcape

Section
Three
Financial
statements
11 Intangible assets continued
The Group’s goodwill in the Russia and Emerging Markets segment at 31 December 2009 is allocated as follows:
Cost
£m
Impairment
provision
£m
Net book
value
£m
Musa Motors group (Russia) 126.6 – 126.6
Inchcape Olimp (Russia) 63.8 – 63.8
Latvia 46.4 (46.4) –
Lithuania 23.2 – 23.2
Other 2.9 – 2.9
At 31 December 2009 262.9 (46.4) 216.5
The value in use calculations for the Musa Motors group currently exceed the carrying value by approximately 20%. A 0.5% increase in
the discount rate or a 0.5% reduction in the long-term growth rate would reduce the headroom available to approximately 5% of the
carrying value. The value in use calculations for the Group’s business in Lithuania currently exceed the carrying value by approximately
10%. A 0.5% increase in the discount rate or a 0.5% reduction in the long-term growth rate would eliminate the headroom available.
b. Other intangible assets
Computer software costs consist of purchase prices from third parties as well as internally generated software development costs. They
include both assets in the course of development and assets in operation. The amortisation charge is largely included within
‘administrative expenses’ in the consolidated income statement.
Other intangible assets include customer contracts and back orders recognised on the acquisition of a business. These intangible
assets are recognised at the fair value attributable to them on acquisition, and are amortised on a straight line basis over their useful
life (usually up to one year).
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