Registration Document

P ◀ CONTENTS ▶
of the date of acquisition of the acquired assets or
liabilities assumed, is recognized as goodwill in the
balance sheet.
The Group measures non-controlling equity
interests on a case-by-case basis for each business
combination either at fair value or based on their
percentage interest in the fair value of identifiable
assets acquired.
Acquisitions made between September 1,
2004 and August 31, 2009
Any excess of the cost of an acquisition over the
Group’s interest in the fair value at the acquisition
date of the identifiable assets, liabilities and
intangible items has been recognized as goodwill in
the balance sheet. Costs incurred and directly related
to the acquisition were included in the acquisition
cost and therefore in goodwill.
Goodwill is not amortized, but is subject to
impairment tests immediately if there are indicators
of impairment, and at least once per year. Impairment
test procedures are described in note 2.8. Goodwill
impairment losses recognized in the income
statement are irreversible.
2.4.2 Negative goodwill
Negative goodwill represents the excess of the
fair value of the assets, liabilities and contingent
liabilities of the acquired entity at the acquisition
date over the consideration transferred (for example
the acquisition cost), increased by the amount of any
non-controlling interest.
After reviewing the procedures for the identification
and measurement of the different components
included in the calculation of goodwill, any negative
goodwill is immediately expensed in the income
statement in the period of acquisition.
2.4.3 Transactions in non-controlling
interests
Changes in non-controlling interests, in the absence
of either assumption or loss of control, are recognized
in shareholders’ equity. In particular, when additional
shares in an entity already controlled by the Group
are acquired, the difference between the acquisition
Consolidated information 06
Notes to the Consolidated Financial Statements
cost of the shares and the share of net assets acquired
is recognized in Equity attributable to equity holders
of the parent. The consolidated value of the assets
and liabilities of the subsidiary (including goodwill)
remains unchanged.
Previously, goodwill was recognized as of the date of
acquisition of non-controlling interests, representing
the excess of the cost of acquisition of the shares
over their carrying value as of the transaction date.
2.4.4. Adjustments and/or earn-outs
Since September 1, 2009, earn-outs related to
business combinations are recognized at their fair
value as of the date of acquisition even if they are
considered to be not probable. After the date of
acquisition, changes in estimates of the fair value
of price adjustments are adjusted to goodwill only
if they occur within the time period allowed (a
maximum of one year as of the date of acquisition)
and if they result from facts and circumstances that
existed at the acquisition date. In all other cases,
the change is recognized in profit and loss or in
other comprehensive income in accordance with
the applicable IFRS standard.
2.4.5 Step acquisitions
In a step acquisition, the fair value of Group’s previous
interest in the acquired entity is measured at the date
that control is obtained and is recognized in profit
and loss. In determining the amount of goodwill
recognized, the fair value of the consideration
transferred (for example the price paid) is increased
by the fair value of the interest previously held by
the Group.
2.5 Intangible assets
Separately acquired intangible assets are initially
measured at cost in accordance with IAS 38. At the
time of the transition to IFRS, the Group did not elect
to re-measure intangible assets at their fair value in
the opening balance sheet as of September 1, 2004.
Intangible assets acquired in connection with a
business combination and which (i) can be reliably
measured, (ii) are controlled by the Group and (iii) are
separable or arise from a legal or contractual right are
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