MAROC_TELECOM_REGISTRATION_DOCUMENT_2017
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FINANCIAL REPORT Consolidated financial statements at 31 December 2015, 2016 and 2017
NOTE 3 — GOODWILL
(in MAD million)
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Mauritel
136
137
137
Onatel
1,838
1,838
1,838
Gabon Telecom
668
641
142
Sotelma Casanet
4,776
4,532
4,613
5
5
5
Filiales Moov (a) 1,704 (a) In accordance with IFRS 3, the financial statements at December 31, 2015 (goodwill and trade accounts payable) have been restated for the impact of the final purchase price allocation for Moov subsidiaries. 1,271 1,206
From Julyb1, 2009, business combinations are recognized using the full goodwill method. Goodwill is allocated to cash generating units (CGU) identified under IAS 36. Sotelma’s goodwill and that of the new subsidiaries acquired in 2015 were measured by applying IFRS 3 revised. The definitive goodwill of the Moov subsidiaries has been finalized in the first half of 2016.
Goodwill is tested for impairment at least once a year and whenever there is evidence of loss of value. A value test consists of comparing the carrying value of each CGU against its market value.This market value is estimated by discounting the future cash flows based on 5 years business plans. For Casanet, the market value is estimated by the market multiples method, on 2017 results and 2018 projections.
Goodwill-impairment tests are based on the following assumptions:
Valuation method
Discount rate in local currency
Perpetual growth rate in local currency
CGU
15.00% 12.00% 12.50% 13.50%
1.50% 1.50% 1.50% 3.00% 3.00%
Mauritel
DCF (b) DCF (b) DCF (b) DCF (b) DCF (b)
Onatel
Gabon Telecom
Sotelma
[9% - 16%]
Filiales Moov
Casanet
Market multiple method
Average of 11.8 x 2017 EBITDA and 12.3 x 2018 EBITDA
(b) DCF: Discounted Cash Flows.
136
MAROC TELECOM ____ 2017 Registration Document
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