Registration Document BOUYGUES

5
Financial statements
Consolidated financial statements
2.7 Non-current assets
2.7.1 Property, plant and equipment
Property, plant and equipment is measured at acquisition cost net of accumulated depreciation and
impairment. Depreciation is recognised on a straight line basis over the estimated useful life of the asset.
Useful lives by main asset category and business segment:
Construction Media Telecoms
Mineral deposits (quarries)
(a)
Non-operating buildings 10 to 40 years 25 to 50 years -
Industrial buildings 10 to 20 years - 20 years
Plant, equipment and tooling b 3 to 15 years 3 to 7 years 5 to 10 years
Other property, plant and equipment
(vehicles and office equipment) b 3 to 10 years 2 to 10 years
(a) Depreciated on the basis of the rate of depletion, up to a maximum of 40 years (Colas)
(b) Depending on the type of equipment
In accordance with IAS 16, when an item of property,
plant and equipment consists of components
with different useful lives, each component is
accounted for and depreciated as a separate item
of property, plant and equipment.
Gains and losses on disposal represent the difference
between the sale proceeds and the carrying
amount, and are recognised in the income
statement under "Other operating income and
expenses".
Depreciation periods are reviewed annually, and
may be adjusted if expectations differ from previous
estimates.
Leases
Items of property, plant and equipment held under
leases (or agreements containing leases in the
sense of IFRIC 4) whereby the Bouygues group
retains substantially all the risks and rewards of
ownership are recognised as assets in the balance
sheet, along with a corresponding liability. Leases
are classified as finance leases or operating leases
in accordance with the criteria specified in IAS 17.
Assets held under finance leases are recognised
in the balance sheet in "Property, plant and equipment"
at the lower of fair value or the present value
of the minimum lease payments, less accumulated
depreciation and impairment losses. They are
depreciated over their estimated useful lives. The
lease obligation is recognised as a liability under
"Debt" in the balance sheet.
Obligations under operating leases are disclosed
in off balance sheet commitments.
Grants received
Investment grants received from national, regional
or local governments are netted off the value of
the assets concerned in the balance sheet, and
depreciated at the same rate as those assets once
receipt of the grant becomes unconditional.
2.7.2 Intangible assets
IAS 38 defines an intangible asset as an identifiable
non-monetary asset without physical substance
which is controlled by the entity. An asset
is identifiable:
> if it is separable, i.e. capable of being independently
sold, transferred, licensed, rented or
exchanged;
> or if it is derived from contractual or other legal
rights, whether separable or not.
An asset is controlled if the entity has the power to
obtain the future economic benefits flowing from
the underlying resource and to restrict the access
of others to those benefits.
Intangible assets with finite useful lives are depreciable.
Intangible assets with indefinite useful lives
are not depreciable, but are subject to impairment
testing and are reviewed at each balance
sheet date to ensure that their useful lives are still
indefinite.
Intangible assets include:
Development expenses
> In accordance with IFRS, incorporation and
research expenses are expensed as incurred.
> Development expenses are capitalised if the
IAS 38 criteria are met, i.e. if they are expected
to generate future economic benefits and their
cost can be reliably measured.
Concessions, patents and similar rights
These include the following assets held by
Bouygues Telecom:
The fee for the UMTS licence, awarded for a
20-year period, comprises:
> a fixed component of €619.2 million, recognised
as an intangible asset on the date the licence
was awarded (12 December 2002);
> a variable component, calculated at 1% of sales
generated by the operation of the third generation
mobile network, recognised as incurred
from the date on which the UMTS network
opened (November 2007).
The licences acquired in 2011 and 2012 (see Notes
1.2 and 1.4) were awarded for a 20-year period,
and will be amortised from the date on which each
licence is brought into use.
2.7.3 Other intangible assets
Other intangible assets recognised by the Group
include leasehold rights and broadcasting rights
(TF1).
TF1 broadcasting rights
This item includes shares in films and programmes
produced or co-produced by TF1
Films Production, TF1 Vidéo and TF1 Production;
distribution and trading rights owned by TF1 DA
and TF1 Entreprises; and music rights owned by
Une Musique.
Type of asset Amortisation method Period
UMTS licence straight line 17.5 years a
IAP-IRU and front fees (Indefeasible Right of Use) straight line 15 years
IT system software and developments,
office applications straight line 3 to 8 years
(a) UMTS licence awarded in 2002:
Amortised from the date on which the broadband network opened (26 May 2005)
BOUYGUES • 2011 Registration Document • FINANCIAL STATEMENTS • 225