§ Mr. JenkinTo ask the Secretary of State for Defence what specific assets are contained in the line item Intangible Assets on the MOD balance sheet for 31 March 2002. [129909]
§ Mr. IngramThe specific assets included in Intangible Assets at 31 March 2002 can be classified into the following main headings:
- (i) Development expenditure incurred in respect of fighting equipment and other tangible fixed assets which are in use
- (ii) Development expenditure incurred in respect of fighting equipment and other tangible fixed assets which are in the course of construction
- (iii) Other intangible non-financial assets comprising mainly intellectual property rights.
The development costs, which mainly represent costs incurred prior to the commencement of production of the asset, are capitalised in the accounts in accordance with the HM Treasury Resource Accounting Manual. The Department's accounting policy on capitalisation and amortisation of the development expenditure is stated in the Departmental Resource Accounts 2001–02.
704WThe detailed analysis of tangible and intangible fixed assets is produced every three years in the form of the National Asset Register, the current publication being in respect of 1999–2000. This publication does not require the break down of the development expenditure in respect of assets in use by individual assets, but the range and type of assets in use by the Department are identified. At 31 March 2002, development expenditure for fixed assets in use amounted to £11.4 billion. Similarly, development expenditure relating to assets in course of construction is not analysed by asset type, but the main projects under construction are identified in the 1999–2000 National Asset Register under Assets In Course of Construction. At 31 March 2002, this development expenditure totalled £8 billion. Other intangible assets amounted to some £80 million as at 31 March 2002.