2019 Annual Report (^119)
14 Goodwill and intangible assets
(CNY million)
Goodwill Software Patents Royalties
Trademark
and others
Total
Cost:
At January 1, 2018 4,089 2,651 3,754 2,947 501 13,942
Exchange adjustments 174 6 20 2 11 213
Additions – 422 495 3,450 301 4,668
Acquisition of subsidiaries 119 – 108 – 151 378
Disposals – (389) (109) (18) (1) (517)
At December 31, 2018 4,382 2,690 4,268 6,381 963 18,684
At January 1, 2019 4,382 2,690 4,268 6,381 963 18,684
Exchange adjustments 115 12 11 1 3 142
Additions – 642 888 786 1,409 3,725
Acquisition of subsidiaries 108 29 277 – 20 434
Reclassified as assets held
for sale
(136) – (111) – (156) (403)
Disposals – (967) (35) (1,045) (139) (2,186)
At December 31, 2019 4,469 2,406 5,298 6,123 2,100 20,396
Amortisation and
impairment:
At January 1, 2018 3,751 2,003 1,178 1,318 365 8,615
Exchange adjustments 175 5 18 1 10 209
Amortisation for the year – 328 232 1,578 130 2,268
Impairment loss 79 1 – – 6 86
Disposals – (387) (52) (18) (1) (458)
At December 31, 2018 4,005 1,950 1,376 2,879 510 10,720
At January 1, 2019 4,005 1,950 1,376 2,879 510 10,720
Exchange adjustments 97 9 10 – 4 120
Amortisation for the year – 513 655 1,147 632 2,947
Impairment loss – 11 – – – 11
Reclassified as assets held
for sale
- – (10) – (54) (64)
Disposals – (964) (19) (1,040) (137) (2,160)
At December 31, 2019 4,102 1,519 2,012 2,986 955 11, 574
Carrying amount:
At December 31, 2019 367 887 3,286 3,137 1,145 8,822
At December 31, 2018 377 740 2,892 3,502 453 7,9 6 4
(a) Based on the use of related assets, the amortisation charge for the year is allocated to Cost of sales, Research
and development expenses, Selling and administrative expenses, and the impairment losses are charged to Cost
of sales and Other income, net in the summary consolidated statement of profit or loss and other comprehensive
income.
(b) Goodwill impairment testing
Goodwill is allocated to the Group’s cash-generating units (CGU) or group of CGUs, which is not larger than an
operating segment and is expected to benefit from the synergies of the acquisition.