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Annual Report & Accounts 2005 - Notes to the Financial Statements
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7 Intangible assets In thousands of euro Goodwill Trademarks Software licence Consulting Magazine Total Cost Balance at 30 November 2004 ^ ^ ^ ^ ^ ^ Acquisitions through business combinations 73,613 15,144 11,840 419 4,500 105,516 Balance at 31 December 2004 73,613 15,144 11,840 419 4,500 105,516 Balance at 1 January 2005 73,613 15,144 11,840 419 4,500 105,516 Other acquisitions ^ ^ 75 ^ ^ 75 At 31 December 2005 73,613 15,144 11,915 419 4,500 105,591 Amortisation Balance at 30 November 2004 ^ ^ ^ ^ ^ ^ Amortisation for the period ^ ^ 16 1 20 37 Balance at 31 December 2004 ^ ^ 16 1 20 37 Balance at 1 January 2005 ^ ^ 16 1 20 37 Amortisation for the year ^ ^ 1,197 105 1,500 2,802 At 31 December 2005 ^ ^ 1,213 106 1,520 2,839 Carrying amounts At 31 December 2004 73,613 15,144 11,824 418 4,480 105,479 At 31 December 2005 73,613 15,144 10,702 313 2,980 102,752 Valuation methodologies The valuation methodology for each type of identifiable intangible asset is detailed below. Asset Valuation methodology Magazine-related Cost Consulting Income (cost saving) Software licence Income (incremental value plus loss of profits) Trade-marks Relief from royalty Goodwill Residual balance The valuation conclusions, for the assets acquired through business combinations, were cross-checked relative to the overall consideration paid in the transaction over net tangible assets, to ensure that the proportion of value attributed to (i) each identifiable intangible asset: and (ii) to all of the identified intangible assets combined in the total purchase price appears reasonable. In addition, the implied weighted average return on assets was reconciled with the cost of capital derived for the business as a whole to check for the reasonableness of values placed on intangible assets and the discount rates/returns used.