MRM - 2018 Registration document

3

General information on the issuer and its capital

Consolidated financial statements for the financial year ended 31 December 2018

4.1.2 Asset purchases

Accounting principles

When the Group acquires an entity comprising a group of assets and liabilities but not constituting a business as defined by IFRS 3, the acquisition is not considered a business combination as defined by that standard and is recorded as an acquisition of assets and liabilities without any goodwill being recognised. Any difference between the cost of acquisition and the fair value of assets and liabilities acquired is allocated on the basis of the relative fair values of the Group’s identifiable individual assets and liabilities at the date of acquisition. In accordance with IAS 12.15 (b), for acquired entities subject to tax, no deferred tax is recognised when assets and liabilities are acquired.

4.2 Intangible assets

Accounting principles

In accordance with IAS 38, intangible assets are measured at historical cost less cumulative depreciation and impairment. They are not subject to any revaluation. Intangible assets that have indefinite useful lives are not amortised. They are tested for impairment annually or more frequently if there are indications of impairment. If the value in use is lower than the net carrying amount, an impairment charge is recognised.

Intangible assets with definite useful lives are amortised on a straight-line basis over their estimated useful lives.

4.3 Tangible assets

Accounting principles

Cost of acquisition of tangible assets Items with determinable costs and for which it is likely that the future economic benefits will flow to the Group are recognised as non-current assets. Tangible assets are recognised at cost less cumulative depreciation and impairment. Where components of tangible assets have different useful lives, they are recognised as separate tangible assets. Depreciation of tangible assets Tangible assets are depreciated over their useful lives. Depreciation is recognised as an expense on a straight-line basis over the estimated useful life of each tangible assets. Impairment of tangible assets When events or new circumstances result in indications of impairment, impairment tests are carried out. The asset’s net carrying amount is compared with its recoverable amount. If the recoverable amount is lower than the net carrying amount of the assets, an impairment charge is recognised.

80

M.R.M. 2018 REGISTRATION DOCUMENT