Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
recognized at fair value separately from goodwill.
Subsequent to initial recognition, intangible assets
are measured at cost less accumulated amortization
and impairment losses.
Intangible assets other than certain brands having
an indefinite useful life are considered to have finite
useful lives, and are amortized by the straight line
method over their expected useful lives:
Integrated management software 5 years
Other software 3-4 years
Patents and licenses 2-10 years
Other intangible assets 3-20 years
Client relationships 3-20 years
The cost of licenses and software recognized in
the balance sheet comprises the costs incurred in
acquiring the software and bringing it into use, and is
amortized over the estimated useful life of the asset.
Subsequent expenditures on intangible assets are
capitalized only if they increase the expected future
economic benefits associated with the asset to which
they relate. Other expenditures are expensed as
incurred.
2.6 Property, plant and equipment
In accordance with IAS 16, property, plant and
equipment are measured at cost less accumulated
depreciation and impairment losses, except for
land, which is measured at cost less accumulated
impairment losses. Cost includes expenditures
directly incurred to acquire the asset, and in some
cases may also include estimated unavoidable future
dismantling, removal and site remediation costs.
Subsequent expenditures are included in the carrying
amount of the asset, or recognized as a separate
component, if it is probable that the future economic
benefits of the expenditures will flow to Sodexo and
the cost can be measured reliably. All other repair
and maintenance costs are recognized as expenses
during the period in which they are incurred, except
costs incurred to improve productivity or extend
the useful life of an asset, which are capitalized. At
the time of the transition to IFRS, the Group did not
elect to re-measure property, plant and equipment
at its fair value in the opening balance sheet as of
September 1, 2004.
Sodexo Registration Document Fiscal 2011
Items of property, plant and equipment are
depreciated over their expected useful lives using
the component-based approach, taking account of
their residual value. The straight line method of
depreciation is regarded as the method that most
closely reflects the expected pattern of consumption
of the future economic benefits embodied in items
of property, plant and equipment.
The useful lives generally used by the Group are:
Buildings 20-30 years
General fixtures and fittings 3-10 years
Plant and machinery 3-8 years
Motor vehicles
Boats and pontoons
4 years
(depending on the component) 5-15 years
The residual values and useful lives of items of
property, plant and equipment are reviewed and, if
necessary, adjusted at each balance sheet date.
The carrying amounts of items of property, plant and
equipment are tested for impairment if there is an
indication that an item has become impaired.
2.7 Leases
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Leases contracted by Sodexo as lessee are accounted
for in accordance with IAS 17, “Leases”.
Finance leases, under which substantially all the
risks and rewards incidental to ownership of an
asset are transferred to Sodexo, are accounted for
as follows:
• at inception of the lease term, the leased asset is
recognized as an asset at the lower of fair value or
the present value of the minimum lease payments;
• the corresponding liability is recognized in
borrowings;
• lease payments are apportioned between
the finance charge and the reduction of the
outstanding liability so as to produce a constant
periodic rate of interest on the remaining balance
of the liability.
An asset held under a finance lease is depreciated
over its estimated useful life, or if there is no
reasonable certainty that the lessee will obtain