Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Intangible assets, property, 10. plant and equipment and ژ long-term ژ financial ژ assets Intangible assets 10.1.

how the intangible asset will generate • probable future economic benefits; the availability of adequate technical, • financial and other resources to complete the development and to use or sell the intangible asset; its ability to reliably measure the • expenditure attributable to the intangible asset during its development. The initial cost of an internally generated intangible asset is equal to the sum of expenditure incurred from the date on which the intangible asset first meets the above-mentioned recognition criteria. If no internally generated intangible asset can be recognised, development costs are recognised in profit or loss for the ژ year in which they are incurred. After initial recognition, internally generated intangible assets are carried at cost less any accumulated amortisation and impairment losses, in accordance with the same method as that used for separately acquired intangible assets. Separately acquired intangible assets areinitially measured at cost, whichcorresponds to their acquisition cost ortheir acquisition-date fair value forintangible assets acquired in a businesscombination. After initial recognition, they are carried atcost less any accumulated amortisationand impairment losses. The useful life of information systems is estimated at between three and seven ژ years.

Separately acquired intangible assets Separately acquired intangible assets are initially measured at cost, which corresponds to their acquisition cost or their acquisition-date fair value for intangible assets acquired in a business combination. After initial recognition, they are carried at cost less any accumulated amortisation and impairment losses. Intangible assets with finite useful lives are amortised over their economic useful life. The useful life of concessions, patents and licences is estimated at between three and seven ژ years. Intangible assets with indefinite useful lives are not amortised. Internally generated intangible assets The Group carries out IT development projects. Expenses incurred in relation to these operations can be included in the cost of intangible assets. An internally generated intangible asset resulting from development (or from the development phase of an internal IT project) is only recognised if the Group can demonstrate all of the following: the technical feasibility of completing the • intangible asset so that it will be available for use or sale; its intention to complete the intangible • asset and use or sell it; its ability to use or sell the intangible • asset;

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2019 annual report