The following is an extract from the 2010 WPP Annual Report:

Corporate brand names, customer relationships and proprietary tools acquired as part of acquisitions of businesses are capitalised separately from goodwill as intangible assets if their value can be measured reliably on initial recognition and it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group.

Certain corporate brands of the Group are considered to have an indefinite economic life because of the institutional nature of the corporate brand names, their proven ability to maintain market leadership and profitable operations over long periods of time and the Group’s com¬ mitment to develop and enhance their value. The carrying value of these intangible assets is reviewed at least annually for impairment and adjusted to the recoverable amount if required.

Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its estimated useful life as follows:

Acquired intangibles

• Brand names (with finite lives) - 10-20 years.

• Customer-related intangibles -3-10 years.

• Other proprietary tools -3-10 years.

• Other (including capitalised computer software) - 3-5 years.

Discuss why maintenance of a brand is treated differently in the statement of income from main¬ tenance of a non-current tangible asset.

(appendix)