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Goodwill and intangible assets purchased prior to 1 January 1998 were written off in the year of acquisition as a movement in profits retained. On subsequent disposal of a business or brand acquired prior to 1 January 1998, purchased goodwill previously written off on acquisition was reinstated in arriving at the profit or loss on disposal.
Under IFRS, from 1 January 2004 onwards, Unilever will no longer apply systematic amortisation to goodwill and intangible assets with an indefinite life, but will instead test these assets for impairment on at least an annual basis. The amortization charge under old GAAP for all goodwill and indefinite lived intangible assets in 2004 was ? 1 040 million...
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