Notes to the accounts
for the year ended 31 December 2007
11. Intangible assets
| 2007 | 2006 | |||||
|---|---|---|---|---|---|---|
| Fund management contracts £mn |
Software £mn |
Total £mn |
Fund management contracts £mn |
Software £mn |
Total £mn |
|
| Cost | ||||||
| At 1 January | 9.9 | 23.8 | 33.7 | - | 27.5 | 27.5 |
| Exchange translation adjustments | - | 0.5 | 0.5 | (0.6) | (0.3) | (0.9) |
| Additions | 2.6 | 12.2 | 14.8 | 10.5 | 4.6 | 15.1 |
| Disposals | - | (0.1) | (0.1) | - | (8.0) | (8.0) |
| At 31 December | 12.5 | 36.4 | 48.9 | 9.9 | 23.8 | 33.7 |
| Amortisation | ||||||
| At 1 January | (1.0) | (17.7) | (18.7) | - | (21.9) | (21.9) |
| Exchange translation adjustments | - | (0.4) | (0.4) | - | 0.3 | 0.3 |
| Amortisation for the year | (1.7) | (3.1) | (4.8) | (1.0) | (4.1) | (5.1) |
| Disposals | - | 0.1 | 0.1 | - | 8.0 | 8.0 |
| At 31 December | (2.7) | (21.1) | (23.8) | (1.0) | (17.7) | (18.7) |
| Carrying amount at 31 December | 9.8 | 15.3 | 25.1 | 8.9 | 6.1 | 15.0 |
The increase in intangible assets during the year in respect of fund management contracts comprises the customer contracts and relationships acquired by the Group on the purchase of AAM (see note 40).
Fund management contracts are amortised over their useful lives of five to seven and a half years. The amortisation charge for the year was £1.7 million (2006: £1.0 million) and is recorded within 'Cost of sales'.
The software assets included above are amortised over their useful lives.
The Group has future commitments to purchase software with a value of £0.3 million (31 December 2006: £2.2 million). None of the Group's intangible assets are internally generated.