155 / 334
E
Financial
E.4
Consolidated financial statements
Atos
|
Registration Document 2016
155
E
If control in a subsidiary is lost, any gain or loss is recognized in
net income. Furthermore, if an investment in the entity is
retained by the Group, it is re-measured to its fair value and any
gain or loss is also recognized in net income.
Goodwill
gain.
previously held interest in the acquiree (if any), the excess is
recognized immediately in profit or loss as a bargain purchase
net of the acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum of the
consideration transferred, of the amount of any non-controlling
interests in the acquiree and of the fair value of the acquirer’s
interests in the acquiree, and the fair value of the acquirer’s
previously held equity interest in the acquiree (if any) over the
net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment, the
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-controlling
Group at which management monitors goodwill.
Goodwill is allocated to Cash Generating Units (CGU) for the
purpose of impairment testing. Goodwill is allocated to those
CGUs that are expected to benefit from synergies of the related
business combination and represent the lowest level within the
the Worldline activities.
geographical areas where the Group has operations – except for
A CGU is defined as the smallest identifiable group of assets that
generates cash inflows that are largely independent of the cash
inflows from other assets or group of assets. CGUs correspond to
value less costs to sell and its value in use determined using the
discounted cash-flows method. When this value is less than its
carrying amount, an impairment loss is recognized in the
operating income.
The recoverable value of a CGU is based on the higher of its fair
The impairment loss is first recorded as an adjustment of the
carrying amount of the goodwill allocated to the CGU and the
remainder of the loss, if any, is allocated pro rata to the other
long term assets of the unit.
The Cash Generating Units used for the impairment test are not
larger than operating segments determined in accordance with
IFRS 8 Operating segments.
circumstances indicate that the carrying amount could not be
recoverable. Such events and circumstances include but are not
limited to:
Goodwill is not amortized and is subject to an impairment test
performed at least annually by comparing its carrying amount to
its recoverable amount at the closing date based on December
actuals and latest 3 year plan, or more often whenever events or
when compared with budget;
significant deviance of economic performance of the asset
•
significant worsening of the asset’s economic environment;
•
loss of a major client;
•
significant increase in interest rates.
•
Intangible assets other than goodwill
business combination as well as internally developed IT
solutions.
software and customer relationships acquired as part of a
Intangible assets other than goodwill consist primarily of
software and user rights acquired directly by the Group,
To assess whether an internally generated intangible asset
meets the criteria for recognition, the Group classifies the
generation of the asset into:
a research phase; and
•
a development phase.
•
is incurred.
Under IAS 38, no intangible asset arising from research (or from
the research phase of an internal project) shall be recognized.
Such expenditure is therefore recognized as an expense when it
and only if, an entity can demonstrate all of the following:
An intangible asset arising from development (or from the
development phase of an internal project) shall be recognized if,
the technical feasibility of completing the intangible asset so
•
that it will be available for use or sale;
it;
its intention to complete the intangible asset and to use or sell
•
its ability to use or sell the intangible asset;
•
economic benefits;
how the intangible asset will generate probable future
•
the availability of adequate technical, financial and other
•
resources to complete the development and to use or sell the
intangible asset; and
its ability to measure reliably the expenditure attributable to
•
the intangible asset during its development.
capitalized are those attributable to the creation, production and
preparation of the asset to be capable of operating in the
manner intended by management.
analyzed on a case-by-case basis and the only costs which are
specific customers or innovative technical solutions made
available to a group of customers. Development projects are
Development expenditure refers to IT solutions developed for
the group’s own use, to specific implementation projects for
less accumulated depreciation and any impairment losses. It is
amortized on a straight-line basis over a useful life between 3
and 12 years, for which two categories can be identified:
Capitalized development expenditure is accounted for at cost
standard contract duration;
the period of amortization will be between 3 and 7 years, the
standard scenario being set at 5 years in line with the
activities with a shorter business cycle and contract duration,
for internal software development with fast technology serving
•