SOLOCAL_Registration Document_2017

FINANCIAL STATEMENTS 6.1 Consolidated financial statements for the years ended 31 December 2016 and 2017

Movements in the net value of tangible fixed assets can be analysed as follows:

31/12/2017

31/12/2016

(in thousands of euros) OPENING BALANCE

33,420

28,381 13,509

Acquisitions Subvention

2,932

(2,942)

Effect of changes in the scope of consolidation

(13) (52)

-

Exchange differences

(24)

1

Reclassifications

(111) (159)

-

Disposals and accelerated amortisation

(21)

Depreciation charge CLOSING BALANCE

(7,593) 25,482

(8,424) 33,420

2

recoverable amount of an asset is the higher of its fair value less exit costs and its value in use. Impairment tests are performed by asset or by group of assets by comparing their recoverable value and their net book value. When an impairment loss appears necessary, the amount recognized is equal to the difference between the net book value and the recoverable amount. The recoverable amount of the assets is most often determined based on the value in use. The latter corresponds to the future economic benefits expected to be derived from the use of the asset and its subsequent disposal. It is assessed by the discounted cash flows method, based on economic assumptions and operating conditions expected by the Management of the Group.

8.3

DEPRECIATION OF FIXED ASSETS

Under IAS 36 “Impairment of Assets”, the value in use of tangible and intangible fixed assets is tested when there is an indication of impairment, reviewed at each closing. Intangible and tangible fixed assets are subject to a write down for impairment when, because of events or circumstances which have occurred during the period (such as obsolescence, physical deterioration, significant changes to the manner in which the asset is used, worse than expected performance, a drop in revenues or other external indicators, etc.), their recoverable amount appears to be lower than their net book value in the long term. The

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2017 Registration Document SOLOCAL