to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESBRANDSOnly the brands that are separable and well known are recognised as assets in the case of businesscombinations and the resulting allocation of the acquisition price.Acquired brands are initially recognised at their fair value, which is estimated on the basis of the methodsnormally used to measure brands.When such brands have a finite useful life, i.e. they are expected to be no longer usable at the end of adetermined period, they are amortised on a straight-line basis over their useful lives.Brands are tested for impairment in accordance with IAS 36 – Impairment of assets.4.6. Property, facilities and equipmententProperty, facilities and equipment are recorded at their acquisition cost, reduced by accumulateddepreciation and impairment provisions, according to the treatment specified by IAS 16 – Property, plant& equipment. This cost includes costs directly attributable to the transfer of the asset to its place ofoperation and its adaptation to operate in the manner anticipated by management.DEPRECIATIONDepreciation is calculated in line with the pattern of consumption of the expected economic benefits ofeach individual asset, based on its acquisition cost, less its residual value.The straight-line method is applied over the following useful lives:- Buildings 10 to 25 years- General purpose facilities, office furniture 10 years- Computer hardware 4 years- Office and technical equipment 3 to 5 yearsRESIDUAL VALUEThe residual value of an asset is the estimated amount that the Group would obtain from disposal of theasset, after deducting the estimated costs of disposal, at the end of its useful life.The residual value of an asset may increase to an amount equal to or greater than the asset’s book value.If it does, the asset’s depreciation charge is zero unless and until its residual value subsequentlydecreases to an amount below the asset’s book value.IMPAIRMENT LOSSESProperty, facilities and equipment are subject to impairment tests when indications of a loss of value areidentified. Should this be the case, an impairment loss is recorded in the income statement under thecaption “Net depreciation, amortisation and provision charges”.FINANCE LEASESAssets acquired through finance leases are capitalised when virtually all risks and rewards of ownership ofthese assets have effectively been transferred to the Group. On their initial recognition in the balancesheet, they are recorded at the lower of their fair value and the discounted value of minimum leasepayments. At year-end, they are recognised at their initial value reduced by accumulated depreciationand impairment.These assets are depreciated over the shorter of the duration of the lease and their estimated useful lives.Leases for which the risks and rewards are not transferred to the Group are classified as operatingleases. Operating lease payments are accounted for as expenses on a straight-line basis over theduration of the lease.4.7. Impairment of assets166 - M6 GROUP - 2012 REGISTRATION DOCUMENT