PSA - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2019 Notes to the Consolidated Financial Statements at 31 December 2019

Breakdown ofgoodwill at period-end C.

31/12/2019

31/12/2018

31/12/2017

(in million euros)

Net Automotive Opel Vauxhall CGU Automotive Peugeot Citröen DS CGU

1,823

1,823

1,810

151 20

121

122

Other businesses CGU

Faurecia CGUs inside Faurecia Group

2,146

1,492

1,216

Faurecia CGU at PSA level

172

172

172

Financing activities Peugeot Citroën DS CGU

-

-

1

TOTAL

4,312

3,608

3,321

Impairment tests on goodwill allocated to the Automotive Equipment CGUs are discussed in Note 8.3.

PROPERTY, PLANT ANDEQUIPMENT 8.2.

Accounting policies A. Gross value (1)

Assets used under leases, as defined in IFRS 16 - Leases , are recognisedas rights of use at an amount equal to the present value of the future lease payments over the term of the lease (recognisedas financialliabilities),plus any lease paymentsmade in advance and any initial direct costs incurred, less any lease incentivesreceived.Thecostmayalsoincludean estimateof costs to be incurredin dismantlingand removingthe underlyingasset, restoringthe site on whichit is locatedor restoringthe underlying assetto the conditionrequiredby the termsand conditionsof the lease. The assets are depreciatedby applying the method and rates indicatedbelow. Depreciation (2) Standardmethod (a) Depreciationis calculatedon a straight-linebasis to write off the acquisitionor productioncosts of the assets, less any residual value, over their estimated useful lives. Property, plant and equipment generally have no residual value, except for leased vehicles.The main useful lives of property,plant and equipment are asfollows:

In accordance with IAS 16 - Property, Plant and Equipment , property, plant and equipment are stated at acquisition or production cost. They are not revalued. Capitalisedcosts includethe portionof specifictoolingexpenses incurredby the Group under cooperationagreementsthat is not billedto itspartners. The cost of items of property,plant and equipmentthat take at least twelvemonthsto get ready for their intendeduse includes relatedborrowing costs (seeNote 12.2.A). Governmentgrants are recognisedas a reductionin the cost of the corresponding assets. Maintenance costs are expensedas incurred. Leased assets include vehicles leased to retail customersby the Group’scompaniesandvehiclessoldwitha buybackcommitment, which are recognised according to the method described in Note 5.1.A.(1)(a).

 (in years) Buildings

40

Material and toolings Computer equipment

4–16

3–4 4–7

Vehicles and handling equipment

Fixtures and fittings

10–30

Specifictooling (b) In the Peugeot Citroën DS and Opel Vauxhall Automotive segments,specifictoolingis depreciatedoverthe estimatedlives of the correspondingmodels, which are generallyshorter than the usefullives of the toolingconcerneddue to the frequencyof model changes. In the Automotive Equipment segment, specific tooling is depreciatedbased on the quantity of parts delivered to the customer, provided that accumulated depreciation at each year-enddoesnot representless thanthe amountthatwouldbe recognisedif the assetwere depreciatedon a straight-linebasis over fiveyears.

Theusefullivesare reviewedperiodically, in particularin the case of decisions to stop manufacturinga vehicle or a mechanical component.

205

PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT