Annual Report & Accounts 2006 - Notes to the Consolidated Financial Statements
Gaming VC Annual Report 2006
(d) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to euro at the foreign exchange rates ruling at the dates
of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are translated to euro at the foreign exchange rate ruling at that date. Foreign exchange differences
arising on translation are recognised in the consolidated income statement. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.
(ii) Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
consolidation, are translated to euro at foreign exchange rates ruling at the balance sheet date. The
revenues and expenses of foreign operations are translated to euro at rates approximating to the foreign
exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on
retranslation are recognised directly in a separate component of equity.
(e) Property, plant and equipment
(i) Owned assets
Property, plant and equipment are stated at cost, less accumulated depreciation (see below) and
impairment losses (see accounting policy g).
Where parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of
each part of an item of property, plant and equipment. The estimated useful lives are as follows:
. buildings 40 years
. plant and equipment 3-12 years
. ¢xtures and ¢ttings 5-10 years
The residual value, if not insigni¢cant, is reassessed annually.
(f) Intangible assets
Acquired goodwill represents the excess of the cost of a business combination over the Group’s interest
in the fair value of the identi¢able assets, liabilities and contingent liabilities of the acquiree at the date of
acquisition. Goodwill is tested at least annually for impairment and carried at cost less accumulated
impairment losses. At the date of acquisition, goodwill is allocated to cash generating units for the
purpose of impairment testing.
Negative goodwill arising on an acquisition is recognised directly in pro¢t or loss.
(ii) Other intangible assets
Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation
(see below) and impairment losses (see accounting policy g).
The cost of intangible assets acquired in a business combination is the fair value at acquisition date. The
valuation methodology used for each type of identi¢able asset category is detailed below:
. Magazine-related Cost
. Consulting Income (cost saving)
. Software licence Income (incremental value plus loss of pro¢ts)
. Trademarks Relief from royalty
. Goodwill Residual balance
Expenditure on internally generated goodwill and brands is recognised in the income statement as an
expense as incurred.
(iii) Subsequent expenditure
Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future
economic bene¢ts embodied in the speci¢c asset to which it relates. All other expenditure is expensed