Note 31 - Intangible assets

Accounting Policy

Intangible assets mainly comprise goodwill in the SpareBank 1 SMN Group. Other intangible assets will be recognised once the conditions for entry in the balance sheet are present. Goodwill arises as the difference between the fair value of the consideration upon purchase of a business and the fair value of identifiable assets and liabilities; see description under Consolidation. Goodwill is not amortised, but is subject to an annual depreciation test with a view to revealing any impairment, in keeping with IAS 36. Testing for value impairment is done at the lowest level at which cash flows can be identified.

Intangible assets acquired separately are carried at cost. Useful economic life is either finite or infinite. Intangible assets with a finite economic life are depreciated over their economic life and tested for impairment upon any indication of impairment. The depreciation method and period are assessed at least once each year.

Amounts recorded on the Bank’s assets are reviewed on the balance sheet date for any indications of value impairment. Should such indications be present, an estimate is made of the asset’s recoverable amount. Each year on the balance sheet date recoverable amounts on goodwill, assets with unlimited useful lifetime, and intangible assets not yet available for use, are computed. Write-downs are undertaken when the recorded value of an asset or cash-flow-generating entity exceeds the recoverable amount. Write-downs are recognised in profit/loss. Write-down of goodwill is not reversed. In the case of other assets, write-downs are reversed where there is a change in the estimates used to compute the recoverable amount.

2023            
Parent Bank   Group
Other
intangible
assets
Goodwill Total (NOK million) Total Goodwill Other
intangible
assets
38   447   485  Cost of acquisition at 1 January 796   680   116 
 12   -   12  Additions 176   31   145 
 133   219   352  Additions as a result of business combinations* 219   219   0 
 -1   -   -1  Disposals -1   -   -1 
 -   -   -  Disposal subsidiary** 183   183   - 
 182   665   847  Cost of acquisition at 31 December 1,373   1,113   260 
             
 18   -   18  Accumulated depreciation and write-downs as at 1 January 125   34   91 
 18   -   18  Current period's depreciation 20   -   20 
 -1   -   -1  Disposals -1   -   -1 
 35   -   35  Accumulated depreciation and write-down as at 31 December 144   34   110 
             
 147   665   812  Book value as at 31 December 1,229   1,079   150 
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* Additions as a result of business combinations shows the effect of the merger with SpareBank 1 Søre Sunnmøre
** As from fourth quarter 2022 the subsidiary SpareBank 1 Markets have been reclassified to investment held for sale. The effect has been presented as disposals.
-
2022            
Parent Bank   Group
Other
intangible
assets
Goodwill Total (NOK million) Total Goodwill Other
intangible
assets
24   447   470  Cost of acquisition at 1 January 1,017   842   175 
 14   -   14  Addition 36   21   16 
 -   -   -  Disposal subsidiary* -258   -183   -74 
 38   447   485  Cost of acquisition at 31 December 795   680   116 
             
 13   -   13  Accumulated depreciation and write-downs as at 1 January 164   34   130 
 5   -   5  Current period's depreciation  -   7 
 -   -   -  Disposal subsidiary* -46   -   -46 
 18   -   18  Accumulated depreciation and write-down as at 31 December 125   34   91 
             
 20   447   467  Book value as at 31 December 670   646   25 
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*As from fourth quarter 2002 the subsidiary SpareBank 1 Markets have been reclassified to investment held for sale. The effect has been presented as disposals.

 

 

 

Annual report and notes

© SpareBank 1 SMN