13. Intangible assets

Measurement basis

Goodwill

All business combinations are accounted for by applying 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 stated at cost less accumulated impairment losses.

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.

Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. 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 life is as follows:

• Software 3 - 10 years