Annual Report 2014 | Suomeksi |

18 Intangible assets

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Accounting policies + -
Intangible assets, except goodwill, are stated at the historical cost less accumulated amortisation and impairment losses. They are amortised on a straight‑line method over their expected useful lives.
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred when bringing the software into use. Costs associated with developing or maintaining computer software are recognised as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Computer software costs recognised as assets are amortised over their estimated useful lives (three to five years).
Trademarks and licenses
Trademarks and licences are shown at historical cost less accumulated amortisation and impairment losses, as applicable. Amortisation is calculated using the straight‑line method to allocate the cost of trademarks and licences over their estimated useful lives (15‑20 years).
Contractual customer relationships
Contractual customer relationships acquired in a business combination are recognised at fair value on acquisition date. The contractual customer relations have a finite useful life and are carried at costs less accumulated amortisation. Amortisation is calculated using the straight‑line method over the expected duration of the customer relationship.
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of net identifiable assets of the acquired subsidiary/associate at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates and is tested for impairment as part of the overall balance. Separately recognised goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Critical accounting estimates: Assigned values and useful lives in acquisitions + -
In an acquisition acquired intangible and tangible assets are fair valued and their remaining useful lives are determined. Management believes that the assigned values and useful lives, as well as the underlying assumptions, are reasonable. Different assumptions and assigned lives could have a significant impact on the reported amounts.
The Group has significant carrying values in property, plant and equipment as well as goodwill which are tested for impairment according to the accounting policies.
See note 19 Property, plant and equipment for more information.
Goodwill Other intangible
EUR million 2014 2013 2014 2013 2014 2013
Cost 1 January 275 309 368 424 644 733
Translation differences and other adjustments ‑101 ‑34 ‑12 ‑1 ‑113 ‑35
Capital expenditure 0 0 22 46 22 46
Change in emission rights 0 0 ‑1 7 ‑1 7
Disposals 0 0 ‑1 ‑20 ‑1 ‑20
Sale of subsidiary companies ‑4 0 ‑24 ‑3 ‑28 ‑3
Reclassifications 0 0 27 5 27 5
Moved to Assets held for sale 0 0 0 ‑89 0 ‑89
Cost 31 December 170 275 379 368 549 644
Accumulated depreciation 1 January 0 0 260 306 260 306
Translation differences and other adjustments 0 0 ‑11 ‑1 ‑11 ‑1
Disposals 0 0 ‑2 ‑20 ‑2 ‑20
Sale of subsidiary companies 0 0 ‑5 0 ‑5 0
Reclassifications 0 0 5 3 5 3
Depreciation for the period 0 0 25 26 25 26
Moved to Assets held for sale 0 0 0 ‑54 0 ‑54
Accumulated depreciation 31 December 0 0 273 260 273 260
Carrying amount 31 December 170 275 106 109 276 384
The goodwill is included in Russia segment and relates to the acquisition of OAO Fortum. The goodwill has been tested for impairment by comparing recoverable amounts of the net operating assets of OAO Fortum, including goodwill, with their carrying amounts. The recoverable amounts were determined on the basis of value in use, applying discounted cash flow calculations.
See also note 19 for information on impairment testing.
The main items in other intangible assets are costs for software products and software licenses, bought emission rights and emission rights received free of charge, which are recognised to the lower of fair value and historical cost.


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