Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
In the event that cash or cash equivalents were restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting period,
these assets are classified as non-current on the statement of financial position.
f) Goodwill and cash-generating unit impairment testing
Goodwill is measured as the excess of the cost of the business combination over
the fair values of identifiable assets, liabilities and contingent liabilities acquired at
the acquisition date. When settlement of the purchase consideration is deferred,
the contingent consideration is measured at fair value at the acquisition date;
subsequent adjustments to the consideration are recognised against the cost of
the acquisition only to the extent that they arise from new information obtained
within the measurement period (a maximum of 12 months from the acquisition
date) about the fair value at the date of acquisition. All other subsequent
adjustments to contingent consideration classified as an asset or a liability are
recognised in profit or loss for the year. The carrying amount of investments in
associates includes the related goodwill on these investments.
Then acquisition-related costs are accounted for separately from the business
combination, generally leading to those costs being recognized as an expense in
profit or loss as incurred.
Negative goodwill is not recognised but charged to the statement of
comprehensive income within the “Other income/ (expense)” caption once the fair
value of net assets acquired is reassessed.
When goodwill has been allocated to a cash-generating unit and the Group has
disposed of an operation within that unit, goodwill associated with the disposed
operation, is measured on the basis of the relative value with regards to the
portion of the cash-generating unit retained, unless there is some other method
that better reflects the goodwill associated with the operation disposed of. The
attributable amount of goodwill is included in the determination of the gain or loss
on disposal.
Goodwill is not amortized and is tested for impairment. Impairment testing is
performed annually and whenever there is an indication that the carrying amount
may not be fully recoverable. Impairment losses relating to goodwill cannot be
reversed in future periods.
Goodwill is tested for impairment together with the assets corresponding to the
cash-generating unit (or group of cash-generating units) that are expected to
benefit from the synergies of the business combination. These assets will also
include the intangible assets with indefinite useful life (such as the Amadeus
Brand), to the extent that they do not generate separate cash inflows from other
assets or group of assets. Thereby the carrying amount of the cash-generating
unit is compared with the recoverable amount and any impairment loss is
recognised in profit or loss.
11