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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6
NON-CURRENT ASSETS
6.1 Intangible assets
In accordance with IAS 38, “Intangible Assets”, an intangible asset is recognised only if the cost of the asset can be measured reliably
and it is probable that the expected future economic benefits attributable to the asset will flow to the Group.
The Group’s intangible assets mainly correspond to software, which are non-current assets with a finite useful life. These assets are
amortised on a straight-line basis over their useful lives, ranging between three and five years depending on the type of software
concerned:
●
management software: 5 years;
●
production software: 3 to 5 years;
●
office automation software: 1 to 3 years.
For internally-generated intangible assets, development costs are capitalised when they meet the recognition criteria in IAS 38,
i.e.
when the Group can demonstrate:
●
the technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
●
its intention to complete the intangible asset and use or sell it;
●
its ability to use or sell the intangible asset;
●
how the intangible asset will generate probable future economic benefits;
●
the availability of adequate technical, financial and other resources to complete the project;
●
its ability to measure reliably the expenditure attributable to the intangible asset during its development.
The cost of an internally-generated intangible asset comprises all directly attributable costs necessary to create, produce, and prepare
the asset to be capable of operating in the manner intended by management. Selling, administrative and other general overhead
expenditure are not components of the cost of an internally-generated intangible asset. Following initial recognition, these assets are
amortised over their estimated useful lives.
Intangible assets are measured at amortised cost (historical cost on initial recognition plus any amortisable costs recognised subsequently
and less any accumulated amortisation and impairment losses).
In millions of euros
2016
2015
At 1 January
3.7
4.6
Additions
2.1
1.9
Effect of changes in scope of consolidation
–
0.1
Impairment losses
–
(0.5)
Amortisation
(2.3)
(2.5)
Currency translation differences
–
0.1
Other movements
0.1
–
At 31 December
3.6
3.7
Gross value at 31 December
52.2
51.2
Accumulated impairment losses at 31 December
48.6
47.5
Intangible assets primarily correspond to software used by the Group.
ASSYSTEM
REGISTRATION DOCUMENT
2016
103