AIRBUS - 2019 Financial Statements
2.5 Operational Assets and Liabilities Notes to the IFRS Consolidated Financial Statements /
NET BOOK VALUE
Balance at 31 December 2019
Balance at 1 January 2019
Changes in consolidation
Exchange differences Additions
Amortisation / Impairment
scope Reclassification (1) Disposals (1)
(In € million)
Goodwill
13,039
11
0
0
4
(35)
0
13,019
Capitalised development costs
1,582
8
134
13
49
7
(333)
1,460
Other intangible assets
2,105
32
275
42
(104)
(8)
(230)
2,112
Total
16,726
51
409
55
(51)
(36)
(563)
16,591
(1) Includes intangible assets from entities disposed (see “– Note 7: Acquisitions and Disposals”).
Balance at 1 January 2018
Changes in consolidation
Balance at 31 December 2018
Exchange differences Additions
Amortisation / Impairment
scope Reclassification (1) Disposals (1)
(In € million)
Goodwill
9,141
12
0
3,894
(4)
(3)
0
13,039
Capitalised development costs
1,763
(2)
91
0
(12)
0
(259)
1,582
Other intangible assets
725
34
233
1,377
(59)
(7)
(199)
2,105
Total
11,629
44
324
5,271
(75)
(10)
(458)
16,726
(1) Includes intangible assets from entities disposed and reclassified to assets and disposal groups classified as held for sale (see “– Note 7: Acquisitions and Disposals”).
Intangible assets decreased by € -135 million to €16,591 million (2018: €16,726 million). Intangible assets mainly relate to goodwill of €13,019 million (2018: €13,039 million). The decrease is primarily due to the disposal of PFW Aerospace GmbH (see “– Note 7: Acquisitions and Disposals”). Capitalised Development Costs The Company has capitalised development costs in the amount of €1,460 million as of 31 December 2019 (€1,582 million as of 31 December 2018), mainly for Airbus programmes (€952 million). Impairment Tests
Each year the Company assesses whether there is an indication that a non-financial asset or a cash generating unit (“CGU”) to which the asset belongs may be impaired. In addition, intangible assets with an indefinite useful life, intangible assets not yet available for use and goodwill are tested for impairment annually, irrespective of whether there is any indication for impairment. An impairment loss is recognised in the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purpose of impairment testing, any goodwill is allocated to the CGU or group of CGUs in a way that reflects the way goodwill is monitored for internal management purposes. The discounted cash flow method is used to determine the recoverable amount of a CGU or the group of CGUs to which goodwill is allocated. The discounted cash flow method is particularly sensitive to the selected discount rates and estimates of future cash flows by management. Discount rates
are based on the weighted average cost of capital (“WACC”) for the groups of cash generating units. The discount rates are calculated based on a risk-free rate of interest and a market risk premium. In addition, the discount rates reflect the current market assessment of the risks specific to each group of CGUs by taking into account specific peer group information on beta factors, leverage and cost of debt. Consequently, slight changes to these elements can materially affect the resulting valuation and therefore the amount of a potential impairment charge. These estimates are influenced by several assumptions including growth assumptions of CGUs, availability and composition of future defence and institutional budgets, foreign exchange fluctuations or implications arising from the volatility of capital markets. Cash flow projections take into account past experience and represent management’s best estimate of future developments.
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Airbus / Financial Statements 2019
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