Tool Amortisation Sap

1. Tool Amortisation Sap Definition

GoodwillThe excess of the consideration transferred in a business combination over the fair value of the identifiable net assets acquired is recorded as goodwill.With respect to at-equity investments, the carrying amount of goodwill is included in the carrying amount of the investment. Intangible AssetsSAP classifies intangible assets according to their nature and use in operation. Software and database licenses consist primarily of technology for internal use, whereas acquired technology consists primarily of purchased software to be incorporated into SAP’s product offerings and in-process research and development. Customer relationship and other intangibles consist primarily of customer contracts and acquired trademark licenses.All SAP’s purchased intangible assets other than goodwill have finite useful lives. They are initially measured at acquisition cost and subsequently amortized either based on expected usage or on a straight-line basis over their estimated useful lives ranging from two to 16 years.SAP recognizes acquired in-process research and development projects as an intangible asset separate from goodwill if a project meets the definition of an asset. Amortization for these intangible assets starts when the projects are complete and the developed software is taken to the market.

Tool Amortisation Sap Definition

SAP typically amortizes these intangibles over five to seven years.Amortization expenses of intangible assets are classified as cost of software and software-related services, cost of professional services and other services, research and development, sales and marketing, and general and administration depending on their use.Source.Goodwill and Intangible Assets Disclosure. Dec 31, 2013Dec 31, 2012Dec 31, 2011Dec 31, 2010Dec 31, 2009Software and database licenses53479Acquired technology/IPRD2,6582,3441,6441,645950Customer relationship and other intangibles4,1844,0272,5042,5251,086Intangible assets, historical cost7,6117,0744,7824,7242,515Accumulated amortization(3,537)(2,810)(2,156)(1,571)(1,234)Intangible assets, carrying value4,0734,2642,6263,1531,281Goodwill18,1,158Goodwill and intangible assets22,3,439Based on:,. Dec 31, 2013Dec 31, 2012Dec 31, 2011Dec 31, 2010Dec 31, 2009Adjustment to Total AssetsTotal assets (as reported)37,0,9,169Less: Goodwill18,1,158Total assets (adjusted)18,8,2,011Adjustment to Equity Attributable To Owners Of ParentEquity attributable to owners of parent (as reported)22,6,2,150Less: Goodwill18,1,158Equity attributable to owners of parent (adjusted)3,2411,1725,1761,8264,992Based on:,.SAP AG, Financial Data: Reported vs. Dec 31, 2013Dec 31, 2012Dec 31, 2011Dec 31, 2010Dec 31, 2009As ReportedSelected Financial Data ( US$ in millions, translated from EUR €)Revenue23,8,5,296Total assets37,0,9,169Activity RatioTotal asset turnover 10.620.600.610.600.80Adjusted for GoodwillSelected Financial Data ( US$ in millions, translated from EUR €)Revenue23,8,5,296Adjusted total assets18,8,2,011Activity RatioAdjusted total asset turnover 21.251.200.981.001.27Based on:,. Dec 31, 2013Dec 31, 2012Dec 31, 2011Dec 31, 2010Dec 31, 2009As ReportedSelected Financial Data ( US$ in millions, translated from EUR €)Total assets37,0,9,169Equity attributable to owners of parent22,6,2,150Solvency RatioFinancial leverage 11.691.891.832.131.58Adjusted for GoodwillSelected Financial Data ( US$ in millions, translated from EUR €)Adjusted total assets18,8,2,011Adjusted equity attributable to owners of parent3,2411,1725,1761,8264,992Solvency RatioAdjusted financial leverage 25.7015.253.649.022.41Based on:,. Solvency ratioDescriptionThe companyAdjusted financial leverageA measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.SAP AG’s adjusted financial leverage ratio increased from 2011 to 2012 but then slightly decreased from 2012 to 2013 not reaching 2011 level.Adjusted Return on Equity (ROE). Dec 31, 2013Dec 31, 2012Dec 31, 2011Dec 31, 2010Dec 31, 2009As ReportedSelected Financial Data ( US$ in millions, translated from EUR €)Profit attributable to owners of parent4,5833,7224,4602,4032,505Total assets37,0,9,169Profitability RatioROA 112.28%10.52%14.80%8.69%13.07%Adjusted for GoodwillSelected Financial Data ( US$ in millions, translated from EUR €)Profit attributable to owners of parent4,5833,7224,4602,4032,505Adjusted total assets18,8,2,011Profitability RatioAdjusted ROA 224.81%20.82%23.68%14.59%20.86%Based on:,.