Notes to the Consolidated Financial Statements
(Years ended December 31, 2007 and 2006 (In thousands of dollars, except per share amounts)
7. Goodwill and intangible assets:
Goodwill is tested for impairment at least annually. The tests were performed in the fourth quarter. The Company found that the fair values of its reporting units were not impaired. Therefore, the second step of the impairment test was not required.
At the time of the respective purchases, the Company recorded intangible assets related to the customer bases of TSX Venture Exchange Inc., NGX, Oxen, Shorcan, and Equicom and, in connection with the acquisition of PC Bond®, the customer base and a long-term data licence under which Scotia Capital Inc. provides fixed income pricing data.
During 2007, the Company capitalized $5,725 of software development costs incurred to build the TSX Quantum trading engine.
| 2007 | 2006 | |||
| Intangible assets, beginning of year | $ | 62,652 | $ | 30,700 |
| Acquisition of intangible assets | 2,936 | 34,435 | ||
| Other additions – TSX Quantum | 5,725 | – | ||
| Less amortization of intangible assets | (4,735) | (2,483) | ||
| Intangible assets, end of year | $ | 66,578 | $ | 62,652 |