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)
The Group operates certain corporate assets, corresponding mainly to tangible
fixed assets, which do not generate cash inflows that are independent from other
assets or groups of assets. Therefore the carrying amount of these assets cannot
be allocated on a reasonable basis to the individual cash-generating units to
which goodwill is allocated. The carrying amount of the corporate assets is
excluded from the impairment test of the separate cash-generating units. As
such, the Group reviews that there is no impairment by comparing the
recoverable amount of the smallest group of cash-generating units that include
the corporate assets (Distribution and IT solutions), with the carrying amount of
those cash-generating units (Distribution and IT Solutions) including the
corporate assets.
g) Impairment of non-current assets
The carrying amounts of significant non-current assets are reviewed at each
balance sheet date to determine if there is an indication of impairment. If such
indication exists the recoverable amount is estimated. The recoverable amount is
the greater of fair value less cost to sell and the value in use. In assessing the
value in use, the estimated future cash flows are discounted to their present
value, by applying an appropriate risk adjusted discount rate. As a result of this
evaluation, an impairment loss is recognized when the carrying amount of an
asset exceeds its recoverable amount, by reducing the carrying amount of the
asset to its recoverable amount, with the corresponding charge to the statement
of comprehensive income in the “Depreciation and amortization” caption. Future
depreciation charges are adjusted for the new carrying amount for the asset’s
remaining useful life. A previously recognized impairment loss is reversed when
new events or changes in circumstances indicate a change in the estimated
recoverable amount. In such cases, the carrying amount of the asset is
increased, not exceeding the carrying amount that would have been determined,
net of depreciation, had no impairment loss been recognized for the asset in prior
years. Impairment loss reversals are recognized in the statement of
comprehensive income within the “Depreciation and amortization” caption. Future
depreciation charges are adjusted to the revised carrying amount over the asset’s
remaining useful life.
h) Intangible Assets
Intangible assets are carried at cost less accumulated amortization and
impairment losses, and reviewed periodically and adjusted for any decrease in
value as noted in paragraph g). These assets include the following:
� Patents, Trademarks and Licenses – This includes the net cost of acquiring
brands and trademarks either by means of business combinations or in
separate acquisitions. It also includes the net cost of acquiring software
licenses developed outside the Group for Distribution and IT solutions. When
a brand is deemed to contribute to Group net cash inflows indefinitely, then it
is treated as having an indefinite useful life. As such it would not be amortized
until its useful life is determined to be finite. Impairment tests will be
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