Intangible assets comprise goodwill and other intangible assets that have been acquired through business combinations.
18.1 Accounting policy
Goodwill arising in a business combination is initially recognised as an asset at cost, measured as the excess of the aggregate of the acquisition-date fair value of the consideration transferred and the amount of any non-controlling interest acquired over the net of the acquisition-date fair value amounts of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. Goodwill is subsequently measured at cost less accumulated impairment losses, with impairment testing carried out annually, or more frequently when there is an indication that the cash-generating unit to which the goodwill has been allocated may be impaired. On disposal of a business, the attributable amount of goodwill is included in the calculation of the profit or loss on disposal.
(b) Other intangible assets
Intangible assets other than goodwill are recognised on business combinations if they are separable, or if they arise from contractual or other legal rights, and their value can be measured reliably. They are initially measured at cost, which is equal to the acquisition date fair value, and subsequently measured at cost less accumulated amortisation charges and accumulated impairment losses. Other intangible assets are subject to impairment testing when there is an indication that an impairment loss may have been incurred and are amortised over their estimated useful lives.
18.2 Movement in net book value
|As at 1 January||904.0||273.1||1,177.1||945.1||277.4||1,222.5|
|Business combinations (note 36)||14.0||—||14.0||8.3||—||8.3|
|Transferred to assets classified as held for sale (note 23)||(6.0)||—||(6.0)||(31.5)||—||(31.5)|
|Demerger of Alent plc (note 24)||(295.0)||—||(295.0)||—||—||—|
|As at 31 December||579.6||266.4||846.0||904.0||273.1||1,177.1|
|Accumulated amortisation and impairment losses|
|As at 1 January||6.1||66.3||72.4||36.2||49.2||85.4|
|Amortisation charge for the year||—||17.5||17.5||—||17.8||17.8|
|Transferred to assets classified as held for sale (note 23)||(6.0)||—||(6.0)||(30.1)||—||(30.1)|
|As at 31 December||—||82.3||82.3||6.1||66.3||72.4|
|Net book value as at 31 December||579.6||184.1||763.7||897.9||206.8||1,104.7|
18.3 Analysis of goodwill by cash-generating unit ("CGU")
Goodwill acquired in a business combination is allocated to each of the Group's CGUs expected to benefit from the synergies of the combination. For the purposes of impairment testing, the Directors consider that the Group has three CGUs: the Steel division, the Foundry division and the Precious Metals Processing division. These CGUs represent the lowest level within the Group at which goodwill is monitored. The goodwill attributable to the Precious Metals Processing CGU has been fully impaired and consequently the amount recognised in the Group balance sheet is £nil (2011: £nil).
18.4 Analysis of other intangible assets
Other intangible assets arose in 2008 on the acquisition of Foseco plc and are being amortised on a straight-line basis over their estimated useful lives. The assets acquired and their remaining useful lives are shown below.
value as at
|Foseco||— customer relationships (useful life: 20 years)||15.3||86.7|
|— trade name (useful life: 20 years)||15.3||55.3|
|— intellectual property rights (useful life: 10 years)||5.3||42.1|