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Internally generated brands, mastheads, publishing
titles, customer lists and items similar in substance are
not recognised as intangible assets.
Amortisation is provided to write down the intangible
assets, on a straight line basis, to their residual values as
follows:
Item
Useful life
Patents
20 years
Licenses
50 years
Capitalised development expenditure
30 years
1.5 Investments in subsidiaries
Company annual financial statements
In the company’s separate annual financial statements,
investments in subsidiaries are carried at cost less any ac-
cumulated impairment.
1.6 Financial instruments
Initial recognition and measurement
Financial instruments are recognised initially when the
group becomes a party to the contractual provisions of
the instruments.
The group classifies financial instruments, or their com-
ponent parts, on initial recognition as a financial asset, a
financial liability or an equity instrument in accordance
with the substance of the contractual arrangement.
Financial instruments are measured initially at fair value.
For financial instruments which are not at fair value
through profit or loss, transaction costs are included in
the initial measurement of the instrument.
Transaction costs on financial instruments at fair value
through profit or loss are recognised in profit or loss.
Subsequent measurement
Financial instruments at fair value through profit or loss
are subsequently measured at fair value, with gains and
losses arising from changes in fair value being included
in profit or loss for the period.
Net gains or losses on the financial instruments at fair val-
ue through profit or loss include dividends and interest.
Dividend income is recognised in profit or loss as part of
other income when the group’s right to receive payment
is established.
Loans and receivables are subsequently measured at
amortised cost, using the effective interest method, less
accumulated impairment losses.
Financial liabilities at amortised cost are subsequently
measured at amortised cost, using the effective interest
method.
Fair value determination
The fair values of quoted investments are based on cur-
rent bid prices. If the market for a financial asset is not
active (and for unlisted securities), the group establishes
fair value by using valuation techniques. These include
the use of recent arm’s length transactions, reference to
other instruments that are substantially the same, dis-
counted cash flow analysis, and option pricing models
making maximum use of market inputs and relying as
little as possible on entity-specific inputs.
Impairment of financial assets
At each reporting date the group assesses all financial
assets, other than those at fair value through profit or
loss, to determine whether there is objective evidence
that a financial asset or group of financial assets has
been impaired.