1owHYXa

Friday, February 19, 2016
The measurement of non-controlling interests at fair value results in an increase in goodwill up to the extent attributable to these interests,
thereby leading to the recognition of a “full goodwill”. The purchase price allocation shall be performed within 12 months after the
acquisition date. If goodwill is negative, it is recognized in the Statement of Earnings. Subsequent to the acquisition date, goodwill is
measured at its initial amount less recorded accumulated impairment losses (please refer to Note 1.3.5.7 below).
In addition, the following principles are applied to business combinations:
on the acquisition date, to the extent possible, goodwill is allocated to each cash-generating unit likely to benefit from the business
combination;
contingent consideration in a business combination is recorded at fair value on the acquisition date, and any subsequent adjustment
occurring after the purchase price allocation period is recognized in the Statements of Earnings;
acquisition-related costs are recognized as expenses when incurred;
in the event of the acquisition of an additional interest in a subsidiary, Vivendi recognizes the difference between the acquisition
price and the carrying value of non-controlling interests acquired as a change in equity attributable to Vivendi SA shareowners; and
goodwill is not amortized.
Business combinations prior to January 1, 2009
Pursuant to IFRS 1, Vivendi elected not to restate business combinations that occurred prior to January 1, 2004. IFRS 3, as published by the
IASB in March 2004, retained the acquisition method. However, its provisions differed from those of its revised standard in respect of the
main following items:
minority interests were measured at their proportionate share of the acquiree’s net identifiable assets as there was no option for
measurement at fair value;
contingent consideration was recognized in the cost of acquisition only if the payment was likely to occur and the amounts could be
reliably measured;
transaction costs that were directly attributable to the acquisition formed part of acquisition costs; and
in the event of the acquisition of an additional interest in a subsidiary, the difference between the acquisition cost and the carrying
value of minority interests acquired was recognized as goodwill.
1.3.5.3 Content assets
Canal+ Group
Film, television or sports broadcasting rights
When entering into contracts for the acquisition of film, television or sports broadcasting rights, the rights acquired are classified as
contractual commitments. They are recorded in the Statement of Financial Position and classified as content assets as follows:
film and television broadcasting rights are recognized at their acquisition cost when the program is available for screening and are
expensed over their broadcasting period;
sports broadcasting rights are recognized at their acquisition cost at the opening of the broadcasting period of the related sports
season or upon the first payment and are expensed as they are broadcast; and
expensing of film, television or sports broadcasting rights is included in cost of revenues.
Theatrical films and television rights produced or acquired to be sold to third parties
Theatrical films and television rights produced or acquired before their initial exhibition to be sold to third parties, are recorded as a content
asset at capitalized cost (mainly direct production and overhead costs) or at their acquisition cost. The cost of theatrical films and television
rights are amortized, and other related costs are expensed, pursuant to the estimated revenue method (i.e., based on the ratio of the current
period’s gross revenues to estimated total gross revenues from all sources on an individual production basis). Vivendi considers that
amortization pursuant to the estimated revenue method reflects the rate at which the entity plans to consume the future economic benefits
related to the asset.
Where appropriate, estimated losses in value are provided in full against earnings for the period in which the losses are estimated, on an
individual product basis.
Film and television rights catalogs
Catalogs comprise film rights acquired for a second television screening, or produced or acquired film and television rights that are sold to
third parties after their first television screening (i.e., after their first broadcast on a free terrestrial channel). They are recognized as an asset
at their acquisition or transfer cost and amortized as groups of films, or individually, based respectively on the estimated revenue method.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /39