Eurazeo / 2019 Universal Registration Document

Financial Statements Consolidated Financial Statements for the year ended December 31, 2019

Property, plant and equipment 16.6. Property, plant and equipment are carried in the balance sheet at their historical cost to the Group, less accumulated depreciation and impairment.

Pursuant to IAS 16, Property, plant and equipment , only those items whose cost can be reliably measured and which are likely to produce future benefits forthe Groupare recognizedas assets. Depreciation is calculated on a straight-line basis over the following useful lives:

Straight-linedepreciationin years

Investment and asset management activities

Eurazeo Capital 8 to 50

Eurazeo Patrimoine

Eurazeo Brands

Property, plantand equipment category

EurazeoPME

Buildings

8 to 40 3 to 12 3 to 10 2 to 10

10 to 50

Tools andequipment

3 to 5

3 to 15 3 to 30 3 to 10 3 to 13 3 to 30

1 to 15 2 to 5 5 to 25 2 to 15 3 to 25

3

Vehicles

Fixtures andfittings

8 to 10

3 3

Officefurnitureandequipment, ITequipment

3 to 5

1 to 10

Industrialequipment

3 to 5

Right-of-use assetsand lease liabilities 16.9. Leases, as defined by IFRS 16, Leases , are recognized in the balance sheet through: an asset, representing the right to use the leased asset during the • lease term; a liabilityrepresenting the obligation tomake leasepayments. • Measurementof the right-to-use asset At the lease commencementdate, the right-of-use asset is measured at cost and comprises: the initial amount of the lease liability plus, where applicable, any • advance payments to the lessor, net of any incentives received from the lessor; where appropriate, any direct initial costs incurred by the lessee • to obtain the lease. These are marginal costs that would not have been incurred had the leasenot beenentered into. The right-of-use asset is depreciated over the useful life of the underlyingasset (lease term forthe leasecomponent). Measurementof the lease liability At the commencementdate, the lease liability is equal to the present value of leasepayments overthe lease term. The measurementof the leaseliability includes: fixed payments (including in-substance fixed payments, i.e. • payments that may, in form, contain variability but that are, in substance,unavoidable); variable lease payments that depend on an index or a rate, initially • measuredusing theindex or rateas at thecommencementdate; amounts expected to be payable by the lessee under residual • value guarantees; the exercise price of a purchase option if its exercise is reasonably • certain; penalties payable for exercising a termination or non-renewal • option, if the leaseterm reflectsthe lessee exercisingthis option.

Depreciation is recognized from the date on which the asset is ready for commissioning.Land is notdepreciated.

Investment properties 16.7. Investment properties are measured initially at historical cost. The related transaction costs are included in the initial valuation. Subsequent to initial recognition, they are stated at fair value. Gains and losses arising from changes in the fair value of investment properties are recognized in the income statement in the period in whichthey occur (inother operating incomeand expenses). The value of investment properties is determined based on reports prepared byappraisers. Impairment of non-financialassets 16.8. Pursuant to IAS 36, Impairment of assets , whenever the value of intangible assets and property, plant and equipment is exposed to a risk of impairment due to events or changes in market conditions, an in-depth review is performed to determine whether the carrying amount is less than the recoverableamount, defined as the greater of fair value (less disposal costs) or value in use. Value in use is calculated by discountingfuture cashflows expected from theuse of the asset. Where the recoverable amount is less than the net carrying amount, an impairment is recognized, corresponding to the difference between those two values. Impairment of property, plant and equipment may subsequently be reversed (up to the amount of the initial impairment and taking account of depreciation charged) if the recoverable amount rises above the carrying amount once again. Likewise, impairment tests are systematically performed on goodwill and intangible assets with an indefinite life, at the end of each year or if there is indication of impairment. However, any impairment recognized ongoodwill cannotbe subsequentlyreversed.

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