EURONEXT_Registration_Document_2017
6
FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements
NOTE 17 GOODWILL AND OTHER INTANGIBLE ASSETS
PURCHASED SOFTWARE CONSTR. IN PR.PATENTS & TRADEMARK
INTANGIBLE ASSETS RECOGNISED ON ACQUISITION OF SUBSIDIARIES
INTERNALLY DEVELOPED SOFTWARE
CUSTOMER RELATIONS
BRAND NAMES
GOODWILL
SOFTWARE
TOTAL
In thousands of euros
As at 31 December 2015 Cost
354,759
54,673
34,130
-
-
-
443,562
Accumulated amortisation and impairment
(53,341)
(43,096)
(25,768)
-
-
-
(122,205)
Net book amount
301,418
11,577
8,362
-
-
-
321,357
As at 1 January 2016 net book amount
301,418
11,577
8,362
-
-
-
321,357
Exchange differences
-
-
(416)
-
-
-
(416)
Additions
-
7,340
1,888
-
-
-
9,228
Amortisation charge (Note 10)
-
(5,087)
(3,926)
-
-
-
(9,013)
As at 31 December 2016 net book amount
301,418
13,830
5,908
-
-
-
321,156
As at 31 December 2016 Cost
354,759
62,013
34,839
-
-
-
451,611
Accumulated amortisation and impairment
(53,341)
(48,183)
(28,931)
-
-
-
(130,455)
Net book amount
301,418
13,830
5,908
-
-
-
321,156
AS AT 1 JANUARY 2016 NET BOOK AMOUNT
301,418
13,830
5,908
-
-
-
321,156
Exchange differences
(1,857)
(44)
(71)
(66)
(605)
(110)
(2,753)
Additions
-
13,277
4,497
-
-
-
17,774
Impairment charge
-
(523)
(2,621)
-
-
-
(3,144)
Transfers and other
-
(608)
608
-
-
-
-
Acquisitions of subsidiaries (Note 5)
122,052
2,334
339
7,789
52,826
7,009
192,349
Amortisation charge (Note 10)
-
(5,136)
(2,757)
(1,152)
(1,203)
-
(10,248)
AS AT 31 DECEMBER 2017 NET BOOK AMOUNT
421,613
23,130
5,903
6,571
51,018
6,899
515,134
AS AT 31 DECEMBER 2017 Cost
474,953
80,365
43,689
7,708
52,208
6,899
665,822
Accumulated amortisation and impairment
(53,340)
(57,235)
(37,786)
(1,137)
(1,190)
-
(150,688)
Net book amount
421,613
23,130
5,903
6,571
51,018
6,899
515,134
Goodwill Impairment Test Goodwill is monitored and tested for impairment at the lowest CGU group level of the Group to which goodwill acquired in a business combination is allocated (see Note 3). Following the acquisition of FastMatch Inc. in 2017 and the allocation of goodwill from this transaction to the “FX Trading” CGU, the Group tests goodwill at the level of two CGU (group)’s: “Euronext” and “FX Trading”. The recoverable value of the “Euronext” CGU group is based on its fair value less cost of disposal, applying a discounted cash flow approach, and corroborated by observation of Company’s market capitalisation. The fair value measurement uses significant unobservable inputs and is therefore categorised as a Level 3 measurement under IFRS 13.
Cash flow projections are derived from the 2018 budget and the business plan for 2019. Key assumptions used by management include third party revenue growth, which factors future volumes of European equity markets, the Group’s market share, average fee per transaction, and the expected impact of new product initiatives. These assumptions are based on past experience, market research and management expectation of market developments. For the impairment test performed as of 31 December 2017, revenues have been extrapolated using a perpetual growth rate of 2.3% (2016: 1.5%) after 2019. The weighted average cost of capital applied was 8.6% (2016: 8.5%). The annual impairment testing of the “Euronext” CGU group performed at each year-end did not result in any instance where the carrying value of the operating segment exceeded its recoverable amount.
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2017 REGISTRATION DOCUMENT
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