Cap Gemini - Registration Document 2016

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FINANCIAL INFORMATION

4.2 Consolidated financial statements

Goodwill and intangible assets Note 13

Statement in “Other operating income and expense”. negative goodwill is recognized immediately in the Income value of the assets acquired and liabilities assumed, the When the cost of a business combination is less than the fair incurred. Statement in “Other operating income and expense” in the year Acquisition-related costs are expensed in the Income circumstances indicate that it may be impaired. annually, or more frequently when events or changes in Goodwill is not amortized but tested for impairment at least Customer relationships the business performed should enable the acquired entity to customer portfolio held by the acquired entity and the nature of On certain business combinations, where the nature of the term of contracts held in portfolio at the acquisition date. valued in intangible assets and amortized over the estimated efforts to build customer loyalty, customer relationships are continue commercial relations with its customers as a result of Licenses and software to five years. effect on future results, are capitalized and amortized over three internally and which have a positive, lasting and quantifiable ownership basis, as well as software and solutions developed Computer software and user rights acquired on an unrestricted software. the salary costs of the staff that developed the relevant internally are costs that relate directly to their production, i.e. The capitalized costs of software and solutions developed

Goodwill share in revalued net assets effectively acquired only (partial to non-controlling interests (full goodwill method) or on the amount of revalued net assets, including the share attributable 100%), the Group elects either to recognize goodwill on the full remaining non-controlling interests (acquisition of less than liabilities assumed. Where an acquisition confers control with recognized in respect of identifiable assets acquired and where applicable, non-controlling interests) over the net amount Goodwill is equal to the excess of the acquisition price (plus, transaction basis. goodwill method). This choice is made on an individual Goodwill balances are allocated to the different cash-generating unit. impairment tests) based on the value in use contributed to each units (as defined in Note 15, Cash-generating units and asset exercise price of the put option granted to non-controlling Statement of Financial Position in the amount of the estimated interests, an operating liability is recognized in the Consolidated provides for the grant of a put option to these non-controlling When a business combination with non-controlling interests interests, through a reduction in reserves. Changes in this put of the discount are also recognized through reserves. Any option resulting from any changes in estimates or the unwinding goodwill is recognized. identifiable assets are not remeasured and no additional considered a transaction with shareholders and, as such, additional acquisitions of non-controlling interests are

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Registration Document 2016 — Capgemini