GENERAL MEETING DRAFT - Bankier.pl

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>> Consolidated Financial Statements
Part B – Consolidated Balance Sheet - Assets
Other
This intangible asset includes all other types of identified so-called customer relationships, including,
without limitation, those derived from the company's ability to obtain commissions from the placement of
third party bonds and activities related to securities auctions.
The average residual useful life of these intangible assets is 11 years.
The Group does not hold intangible assets acquired by way of public contributions and intangible assets
pledged as collateral for liabilities.
The impairment test of intangible assets recognized through business combination transactions
Pursuant to IAS 36, all intangible assets having an indefinite useful life, including goodwill, must be
subjected, at least annually, to impairment tests to verify the recoverability of their indicated values. For
those intangible assets having a finite useful life, one is required to calculate any potential losses each
time loss indicators are triggered.
Recoverable value is the greater amount between the utility value (current value of future financial cash
flows generated by the assets being considered) and related fair value net of selling costs.
The recoverable value of the intangible assets subject to the impairment test must be calculated for each
individual asset, unless both of the following conditions are met:
� The utility value for the asset is not estimated to be close to the fair value net of selling costs;
� The asset does not generate financial flows that are comfortably independent of those connected
with other assets.
When such conditions are met, the impairment test is carried out on a Cash Generating Unit (CGU) level,
as required under the above-mentioned accounting principle.
It should be noted that the impairment tests carried out by the UniCredit Group in calculating the utility
value of the Cash Generating Units (CGU), as described herein, includes both intangible assets having an
indefinite useful life (goodwill and trademarks), as well as intangible assets having a finite useful life (core
deposits and customer relationships), where the loss indicators noted in the accounting principle are
used.
In fact, core deposits and customer relationships are considered as not capable of being the focus of
independent impairment tests, since these assets do not generate financial flows independent of those
connected with other assets.
In order to calculate the utility value of intangible assets subject to impairment tests, accounting principle
IAS 36 provides that one must refer to cash flows related to such assets upon the conditions applicable
as at the date of the test, not making any distinction between cash flows connected to the assets
originally considered with the application of IFRS 3 and those based on subsequent changes.
In order to carry out the impairment tests, the utility value of the so-called “Cash Generating Units”
(“CGUs”) to which such intangible assets have been allocated must be calculated taking into account
cash flows for all the assets and liabilities included in the CGUs, and not only those for which goodwill
and/or intangible assets have been identified under IFRS 3.
Definition of Cash Generating Units (CGU)
The estimated utility value for the purposes of verifying any impairment of intangible assets, including
goodwill, which do not generate cash flows except as accessories to other company business, requires
that these assets be first attributed to relatively independent operating units in terms of management
(from the viewpoint of generating independent cash flows, planning and internal reporting). These
operating units are specifically defined as Cash Generating Units (CGU).