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Annual Report & Accounts 2007
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6 Intangible assets In thousands of euro Goodwill Trademarks Software licence Consulting Magazine Total Cost Balance at 1 January 2006 73,613 15,144 11,915 419 4,500 105,591 Acquisitions ^ ^ 231 ^ ^ 231 Balance at 31 December 2006 73,613 15,144 12,146 419 4,500 105,822 Balance at 1 January 2007 73,613 15,144 12,146 419 4,500 105,822 Acquisitions ^ ^ 95 ^ ^ 95 At 31 December 2007 73,613 15,144 12,241 419 4,500 105,917 Amortisation and impairment losses Balance at 1 January 2006 ^ ^ 1,213 106 1,520 2,839 Amortisation for the year ^ ^ 9,556 105 1,500 11,161 Impairment loss for the year 33,274 ^ ^ ^ ^ 33,274 Balance at 31 December 2006 33,274 ^ 10,769 211 3,020 47,274 Balance at 1 January 2007 33,274 ^ 10,769 211 3,020 47,274 Amortisation for the year ^ ^ 1,335 104 1,480 2,919 Impairment loss for the year ^ ^ ^ ^ ^ ^ At 31 December 2007 33,274 ^ 12,104 315 4,500 50,193 Carrying amounts At 31 December 2006 40,339 15,144 1,377 209 1,480 58,548 At 31 December 2007 40,339 15,144 137 104 ^ 55,724 Valuation methodologies The valuation methodology of each type of identi˘able intangible asset is detailed below. Asset Valuation methodology Magazine-related Cost Consulting Income (cost saving) Software licence Income (incremental value plus loss of pro˘ts) 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 identi˘able tangible asset: and (ii) to all of the identi˘ed 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. 20