notes to the Consolidated Financial Statements (cont’d) goodwill intangible aSSetS reSearch and development coStS 63 AnnuAl RepoRt 2011 Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at  cost less any accumulated amortization and accumulated impairment losses. Research and development costs include all costs relating to the activities that support the development and manufacturing of new  or improved products or processes. Research activity costs are expensed as incurred. Development expenditures on an individual  project are recognized as an intangible asset when the Company is able to demonstrate the following: The estimated useful lives for the current and comparative periods are as follows: Gains or losses from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the  carrying amount of the asset and are recognized in the income statement when the asset is derecognized.  The Company’s intangible assets consist of brands that have been acquired through a business combination and have indefinite  useful lives requiring impairment testing annually or more frequently when an indication of impairment exists.  Intangible assets with indefinite useful lives are tested for impairment annually at the cash-generating unit level. Such intangibles  are not amortized. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite  life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a  prospective basis. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each  financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied  in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting  estimates. The amortization expense on intangible assets with finite lives is recognized in the income statement in the expense  category consistent with the function of the intangible asset.  Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business  combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any  accumulated amortization and any accumulated impairment losses.  The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortized over  the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.  Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. Where the  recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognized. Impairment  losses relating to goodwill cannot be reversed in subsequent periods. Where goodwill forms part of a cash-generating unit and part of  the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying  amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is  measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. Goodwill acquired in business combinations is initially measured at cost being the excess of the cost of the business combination  over the fair value of the acquired interest in the identifiable assets, liabilities and contingent liabilities. Following initial recognition,  goodwill is measured at cost less any accumulated impairment losses. Goodwill will be reviewed for impairment annually, or more  frequently if events or changes in circumstances indicate that the carrying value may be impaired. For the purpose of impairment  testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating  units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the  Company are assigned to those units or groups of units.  Brands  2–8 years  Customer relationships  10–20 years  Indefinite lived brands  Indefinite, subject to impairment testing annually • The technical feasibility of completing the intangible asset so that it will be available for use or sale; • Its intention to complete and its ability to use or sell the asset; • How the asset will generate future economic benefits; • Its ability to use or sell the intangible asset arising from the project; • The availability of resources to complete the asset; and • The ability to clearly identify the related costs on an individualized basis for a specific project during the development phase.