Notes to the Accounts For the year ended 31 December 2007

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11. Intangible assets

  2007 2006
Group Computer
software
£ '000
Goodwill
£ '000
Total
£ '000
Computer
software
£ '000
Goodwill
£ '000
Total
£ '000
Cost            
At 1 January 5,931 1,539 7,470 5,347 1,539 6,886
Additions 1,579 1,579 737 737
Disposals (517) (517) (3) (3)
Effect of movements in foreign exchange 347 347 (150) (150)
At 31 December 7,340 1,539 8,879 5,931 1,539 7,470
Amortisation            
At 1 January 3,872 3,872 3,135 3,135
Charge for the year 934 934 815 815
Disposals (470) (470) (2) (2)
Effect of movements in foreign exchange 247 247 (76) (76)
At 31 December 4,583 4,583 3,872 3,872
Net book value            
At 31 December 2,757 1,539 4,296 2,059 1,539 3,598

Impairment tests for goodwill

Goodwill is allocated to the Group's cash-generating units (CGUs) identified according to the country of operation.

A summary of the goodwill allocation is presented below.

  2007
£ '000
2006
£ '000
UK 1,274 1,274
USA 214 214
Singapore 51 51
  1,539 1,539

In assessing value in use, the estimated future cash flows are calculated by preparing cash flow forecasts derived from the most recent financial budget and an assumed growth rate of 5%, which does not exceed the long-term average growth rate of the relevant markets. The terminal value of the cash flow is then calculated by discounting using the Group's weighted average cost of capital (8%). If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense.

The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. It is the opinion of the Directors that at 31 December 2007 there was no impairment of intangible assets.

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