Rolls-Royce Annual Report 2000

Financial statements

< Notes to the financial statements

Note 9

< BACK

NEXT >

9 Intangible fixed assets

			Group			Company

	Goodwill £m	Certification costs¹ £m	Total £m	Goodwill £m	Certification costs¹ £m	Total £m

Cost
At January 1, 2000 as restated	878	96	974	—	96	96
Exchange adjustments	6	—	6	—	—	—
Additions	—	10	10	—	10	10
Other movements ²	33	—	33	—	—	—
Disposals	(19)	—	(19)	—	—	—

At December 31, 2000	898	106	1,004	—	106	106



Accumulated amortisation
At January 1, 2000 as restated	5	51	56	—	51	51
Provided during the year	46	14	60	—	14	14
Disposals	(1)	—	(1)	—	—	—

At December 31, 2000	50	65	115	—	65	65

Net book value at December 31, 2000	848	41	889	—	41	41

Net book value at December 31, 1999 as restated	873	45	918	—	45	45

¹Certification costs, which were previously included in prepayments, have been treated as intangible assets. This change in accounting policy which has resulted from the adoption of UITF* 24 ‘Accounting for Start-up Costs', has no effect on prior year reserves. The period of amortisation has been amended from five years to the life of the programme, subject to the maximum of ten years, as this is considered to be more appropriate.
*The UITF (Urgent Issues Task Force) is a committee of the Accounting Standards Board.

²For the acquisitions made in 1999, provisional fair values were ascribed to the assets and liabilities at the acquisition dates (1999 annual report note 30).
Other movements comprising the finalisation of these fair values and of the consideration paid are detailed in note 30 (page 64).