10 Purchased interest in long term businesses (PILTB) and other intangible assets.

10 Purchased interest in long term businesses (PILTB) and other intangible assets.

Portfolios of in-force insurance or investment contracts acquired either directly or through the acquisition of a subsidiary undertaking are capitalised at fair value. The value of business acquired represents the present value of anticipated future profits in acquired contracts. These amounts are amortised over the anticipated lives of the related contracts in the portfolio.

Intangible assets acquired via business combinations, such as the value of customer relationships, are recognised at fair value and are subsequently amortised over their useful life in line with the expected emergence of profit from the business. Where software costs are separately identifiable and measurable they are capitalised at cost and amortised over their expected useful life.

Purchased interest in long term businesses and other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

(XLS:) Purchased interest in long term businesses (PILTB) and other intangible assets 2013

 

PILTB insurance contracts
2013
£m

PILTB investment contracts
2013
£m

Other intangible assets
2013
£m

Total
2013
£m

Cost

 

 

 

 

As at 1 January

331

77

174

582

Acquisition of subsidiaries

34

58

92

Additions

36

36

Net exchange difference

5

5

As at 31 December

336

111

268

715

 

 

 

 

 

Accumulated amortisation and impairment

 

 

 

 

As at 1 January

(303)

(38)

(30)

(371)

Amortisation for the year

(8)

(7)

(24)

(39)

Net exchange difference

3

3

As at 31 December

(308)

(45)

(54)

(407)

 

 

 

 

 

Net book value as at 31 December

28

66

214

308

 

 

 

 

 

To be amortised within 12 months

 

 

 

50

To be amortised after 12 months

 

 

 

258

(XLS:) Purchased interest in long term businesses (PILTB) and other intangible assets 2012

 

PILTB insurance contracts
2012
£m

PILTB investment contracts
2012
£m

Other intangible assets
2012
£m

Total
2012
£m

Cost

 

 

 

 

As at 1 January

340

77

88

505

Acquisition of subsidiaries

54

54

Additions

32

32

Net exchange difference

(9)

(9)

As at 31 December

331

77

174

582

 

 

 

 

 

Accumulated amortisation and impairment

 

 

 

 

As at 1 January

(302)

(32)

(23)

(357)

Amortisation for the year

(10)

(6)

(7)

(23)

Net exchange difference

9

9

As at 31 December

(303)

(38)

(30)

(371)

 

 

 

 

 

Net book value as at 31 December

28

39

144

211

 

 

 

 

 

To be amortised within 12 months

 

 

 

33

To be amortised after 12 months

 

 

 

178

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