MRM - 2020 Universal Registration Document
3
General information on the issuer and its share capital
Consolidated financial statements for the financial year ended 31 December 2020
4.1.2 Acquisition of assets
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 Rights of use
Accounting principles
From 1 January 2019 Group leases are recognised according to IFRS 16 - “Leases” - under which a right-of-use asset and a lease liability are recorded in the balance sheet. In the income statement rental expenses are replaced by a depreciation expense of the right-of-use asset recorded under “Provisions and impairment” and by interest expenses recorded under “Gross borrowing cost”. The Group chose to apply the standard by recognising the cumulative effect of initially applying the standard as an adjustment to opening equity at the date of initial application.
Right-of-use assets break down as follows:
12/31/2020
12/31/2019
Gross Amort./Impair.
Net
Net 125
(in thousands of euros)
Right-of-use assets - Immovable asset Right-of-use assets - Movable asset
273
180
94
-
-
-
8
TOTAL RIGHT-OF-USE ASSETS
273
180
94
132
A lease liability of €95 thousand was also recorded in the balance sheet. In 2020 rental expenses of €35 thousand were deleted while accumulated depreciation and accumulated impairment of €34 thousand and interest expenses of €1 thousand were recorded.
M.R.M. 2020 UNIVERSAL REGISTRATION DOCUMENT
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