EURAZEO_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements 4 The useful life of intangible assets is assumed to be finite and amortization is recognized as an expense, generally calculated on a straight-line basis over the estimated useful life:

Straight-line amortization in years

Sommet Education Novacap

Intangible asset category

Asmodee

Eurazeo PME

Fintrax

Iberchem

Customer contracts and relationships

10 to 23 10 to 15

9

3 to 5

10 to 20

Patents and licenses

5 to 10 3 to 5

Other software Accreditations

1 to 3

1 to 5

3 to 6

5 5

Curricula

Digital Platform and infrastructure Distribution licences of games acquired Published games internally developed

3 to 10

5

1 to 2 Amortization is recognized from the date on which the asset is ready for commissioning. Property, plant and equipment 16.5

Assets financed by way of leases with purchase options or long-term leases, which transfer to the lessee substantially all of the risks and rewards of ownership of the asset, are accounted for as fixed assets and depreciated in accordance with accounting principles applicable to property, plant and equipment. The cost of assets includes the upfront costs directly related to securing the lease (negotiation expenses, legal and advisory fees, etc.). The financial commitments arising as a result of these contracts are recognized in borrowings. Depreciation is calculated on a straight-line basis over the following useful lives:

Property, plant and equipment are carried in the balance sheet at their historical cost to the Group, less accumulated depreciation and impairment. Pursuant to IAS 16, Property, plant and equipment, only those items whose cost can be reliably measured and which are likely to produce future benefits for the Group are recognized as assets.

Straight-line depreciation in years

Carambar & Co

Eurazeo

Sommet Education

Grape Hospitality Novacap

Tangible asset category

Asmodee

PME Fintrax Iberchem

Buildings

30 10 to 25

25 30 to 33 20 to 50 15 to 50 8 to 30

Tools and equipment

2 to 10 7 to 15

3 to 10

3 to 8

3 to 15

Vehicles

3 to 5 7 to 10

5

5

3 to 5 3 to 7

5

5 to 30

Fixtures and fittings

20

5 to 8

5 to 8

7 to 25

Office furniture and equipment, IT equipment

2 to 10 5 to 10 3 to 10

3 to 7

3 to 8 3 to 8

3 to 10

Industrial equipment

20 to 30

Depreciation is recognized from the date on which the asset is ready for commissioning. Land is not depreciated.

Investment properties 16.6 Investment properties are measured initially at cost. The related transaction costs are included in the initial valuation. Subsequent to initial recognition, they are stated at fair value. Gains and losses arising from changes in the fair value of investment properties are recognized in the income statement in the period in which they occur (in other operating income and expenses). The value of investment properties is determined based on reports prepared by appraisers. impairment of non-financial assets 16.7 Pursuant to IAS 36, Impairment of assets, whenever the value of property, plant and equipment is exposed to a risk of impairment due to events or changes in market conditions, an in-depth review is performed to determine whether the carrying amount is less than the recoverable amount, defined as the greater of fair value (less disposal costs) or value in use. Value in use is calculated by discounting future cash flows expected from the use of the asset.

Where the recoverable amount is less than the net carrying amount, an impairment is recognized, corresponding to the difference between those two values. Impairment of property, plant and equipment may subsequently be reversed (up to the amount of the initial impairment) if the recoverable amount rises above the carrying amount once again. Likewise, impairment tests are systematically performed on goodwill and intangible assets with an indefinite life, at the end of each year or if there is indication of impairment. However, any impairment recognized on goodwill cannot be subsequently reversed. Financial assets and liabilities 16.8 Initial recognition of financial assets and liabilities Financial assets and financial liabilities are recognized when a Group entity becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets or financial liabilities (that are not financial assets at fair value through profit or loss) are added to or deducted from the fair value of financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly

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2017 Registration document

Eurazeo