Notes to the Financial Statements
for the year ended 31 December 2004
18 Goodwill
| £m | |||
Note |
At 31 December 2004 |
At 31 December 2003 |
|
| At beginning of year | 1,264 |
1,598 |
|
| Additions arising on acquisitions in the period | 17(a) |
44 |
- |
| Adjustments in respect of prior year acquisitions* | (1) |
81 |
|
| Disposals | (20) |
(159) |
|
| Amortisation and impairment for the year | (105) |
(194) |
|
| Foreign exchange and other movements | (30) |
(62) |
|
| At end of year | 1,152 |
1,264 |
|
| Represented by: | |||
| Cost less impairments | 1,432 |
1,508 |
|
| Accumulated amortisation | (280) |
(244) |
|
1,152 |
1,264 |
||
| Analysed between: | |||
| Life assurance | 60 |
75 |
|
| Asset management | 745 |
863 |
|
| General insurance | 41 |
12 |
|
| Banking | 306 |
314 |
|
1,152 |
1,264 |
*Adjustments in respect of prior year acquisitions reflect the latest estimate of the deferred consideration payable for the purchase of certain US affiliates under various agreements which expire in 2007. As such the ultimate cost of purchase will remain uncertain, dependent on future events, and hence subject to further future adjustment.
Amortisation and impairment for the year
The total goodwill amortisation and impairment charge for the year of £110 million (R1,290 million) (2003: £206 million (R2,544 million)) comprises
£55 million (R648 million) (2003: £146 million (R1,803 million)) attributable to banking businesses and £55 million (R642 million) (2003: £60 million
(R741 million)) attributable to insurance and other businesses. Of this total charge, £105 million (R1,238 million) (2003: £194 million (R2,396 million))
is disclosed above and £5 million (R52 million) (2003: £12 million (R148 million)) is disclosed within investments in associated undertakings (note 26(h)).
The charge for the period includes an impairment charge of £27 million (R319 million) in respect of Group adjustments associated with our banking
subsidiaries.
