NOTE 16. INTANGIBLE ASSETS
CONSOLIDATED
Software
development
expenditure
Distribution
channels
Customer
relationships
Brands and
other
Total
$m
$m
$m
$m
$m
2015
A. COMPOSITION
Cost
714
152
169
118
1,153
Accumulated amortisation
(351)
(36)
(58)
(22)
(467)
Accumulated impairment
(7)
-
-
-
(7)
Net foreign exchange movements
(13)
(2)
3
4
(8)
Balance at the end of the financial year
343
114
114
100
671
B. RECONCILIATION OF MOVEMENTS
Balance at the beginning of the financial year
288
155
144
113
700
Additions acquired and developed
118
2
-
10
130
Disposal through sale of businesses
-
(10)
-
-
(10)
Amortisation
(59)
(31)
(28)
(21)
(139)
Net foreign exchange movements
(4)
(2)
(2)
(2)
(10)
Balance at the end of the financial year
343
114
114
100
671
2014
C. COMPOSITION OF COMPARATIVES
Cost
596
160
169
108
1,033
Accumulated amortisation
(292)
(5)
(30)
(1)
(328)
Accumulated impairment
(7)
-
-
-
(7)
Net foreign exchange movements
(9)
-
5
6
2
Balance at the end of the financial year
288
155
144
113
700
D. RECONCILIATION OF MOVEMENTS
Balance at the beginning of the financial year
160
17
38
30
245
Additions acquired and developed
105
-
-
-
105
Additions through business acquisition
57
140
112
80
389
Amortisation
(38)
(2)
(8)
(1)
(49)
Net foreign exchange movements
4
-
2
4
10
Balance at the end of the financial year
288
155
144
113
700
E. AMORTISATION RATES
10%-33.3% 10%-20% 10%-33.3% 0%-33.3%
F. EXPLANATORY NOTES FOR INTANGIBLE ASSETS
I. Software development expenditure
The software development expenditure asset comprises both internally generated assets and acquired assets.
II. Acquired intangible assets
All of the intangible assets, other than the capitalised software development expenditure intangible asset, have been acquired. With
the exception of certain brand assets, each of the acquired assets has a finite useful life. The amortisation of the acquired intangible
assets with finite lives forms part of fee based, corporate and other expenses in the statement of comprehensive income. A broad
description of the nature of each of the significant intangible assets is provided below.
a. DISTRIBUTION CHANNELS
The value of the distribution channels is derived from future revenue expected to be generated as a result of the existing relationships
with the broker networks.
b. CUSTOMER RELATIONSHIPS
This represents the present value of future profits expected to arise from existing customer relationships (developed prior to
acquisition). The assumptions for the useful life and attrition rates for the existing customer base are determined based on historical
information of the business.
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