ADP_REGISTRATION_DOCUMENT_2017
FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 20 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2017
Intangible assets are depreciated using the straight-line method according to their estimated useful life and estimated traffic:
of Istanbul Atatürk airport. This right to receive a remuneration was valued at fair value at initial recognition. In addition, costs related to the contract include rental costs payable for the operation of the concession and the expenses incurred to reinforce and improve Atatürk domestic terminal infrastructures. TAV Istanbul paid certain rental charges in advance, which amounts, recognised as assets (see note 4.3), are accounted for over the period covered by the prepaid concession rent charges. Expenses incurred by TAV Istanbul for the improvement of domestic terminal infrastructures are recognised as assets (see note 6.2) and amortised over the contract period.
Istanbul Atatürk operations contract : Considering that TAV Istanbul has control over a significant portion of revenue and prices, the Group considers that the concession agreement related to Istanbul Atatürk, which terminates in 2021, does not fall under the scope of IFRIC Interpretation 12. The Group recognised an intangible asset resulting from the right to receive a remuneration from the users
Intangible assets are detailed as follows:
Fixed assets in progress, related advances & prepayments
Airport operation right*
Total
Software
Other
Goodwill
(in millions of euros)
Gross value
25
- - -
264
4
23
316
Accumulated amortisation & depreciation Carrying amount as at 1 January, 2017
(7)
(197)
(2)
-
(206)
18
67
2
23 27
110
Purchases
- - -
2
2
- -
31
Change in advances and prepayments
-
28
(21)
7
Depreciation and Amortisation Changes in consolidation scope
(46) 2,031
(24)
(72) 659
- - -
(142) 2,809
113
6
Translation adjustments
-
(7)
-
-
(7)
Carrying amount as at 31 December, 2017
131 138 (7)
1,980 2,021
79
589 690
29 29
2,808 3,193 (386)
Gross value
315
Accumulated amortisation & depreciation
(41)
(236)
(102)
-
* See note 6.1.1
As at 31 December 2017, there is no indicator of impairment loss on the intangible asset related to the operation contract of Istanbul Atatürk airport. In addition, the construction project for the third airport in Istanbul should not, based on our knowledge, have a significant impact on the future revenue of the entity linked to the concession of Istanbul Atatürk airport, considering that TAV Airports and its subsidiary TAV Istanbul (wholly-owned) have been officially informed by the DHMI that TAV Istanbul will be compensated for the shortfall that it may undergo between the date of the opening of the new airport and the date of the end of the current lease contract. The practical terms to determine this compensation will be subject to negotiations with the DHMI that should start in 2018.
As of 31 December 2017, the goodwill relates mainly to: ◆ TAV Airports for €113 million; ◆ ADP Immobilier Tertiaire for €7 million; ◆ Hub One Mobility for €12 million.
The net amount for transfers to and from other headings relates in particular to the reclassification of fixed assets under construction as tangible and intangible assets.
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AÉROPORTS DE PARIS REGISTRATION DOCUMENT 2017
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