Sopra Steria - 2020 Universal registration document

6 2020 PARENT COMPANY FINANCIAL STATEMENTS Notes to the balance sheet

Notes to the balance sheet 5.

Non-current assets 5.1. #) # ! (( )(

Gross value .6- 7/ 8.927-

Gross value +.0266260 7/ 8.927-

Acquisitions

Disposals

26 ;17<:*6-: 7/ .<97:

Research and development expenses Concessions, patents and similar rights

-

48,692 172,926

- - -

1,123

47,569 172,926

Goodwill

- -

Other intangible assets (#( , '' ('

2,250

2,250

Amortisation and provisions +.0266260 7/ 8.927-

Amortisation and provisions .6- 7/ 8.927-

Charges

Reversals

26 ;17<:*6-: 7/ .<97:

Research and development expenses Concessions, patents and similar rights

-

-

-

-

45,266 55,054

1,885

1,123

46,027 55,054

Goodwill

-

- -

Other intangible assets (#( !#&( ' ( #" " $&#* ' #"'

857

429

1,286

Research and development costs for software and solutions, which totalled €23.648 million in 2020, are recognised as expenses.

Intangible assets comprise: software acquired or contributed; p goodwill and technical merger losses acquired or contributed p during mergers. Software development costs All research and development costs are charged to the income p statement for the financial year during which they are incurred. Development costs for software and solutions may be capitalised if all of the following can be demonstrated: the technical feasibility of completing the intangible asset for • use or sale; the intent to complete the intangible asset and use or sell it; • the ability to use or sell the intangible asset; • the manner in which 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; the ability to reliably measure the expenditure attributable to • the intangible asset during its development. The only research and development costs recognised are from companies acquired and subsequently merged.

Software acquired Software is recognised at cost. It is amortised on a straight-line p basis over one to ten years. Goodwill Goodwill consists of acquired assets of a business that cannot p be shown in any other balance sheet item. As such, it is calculated by deducting from the total value of a business those elements of that business that can be recognised separately in the balance sheet. Sopra Steria Group conducts goodwill impairment tests every p year. The duration of use of goodwill is presumed to be unlimited. p The Company writes down the value of an asset if its current p value (the higher of market value and value in use) is less than its carrying amount. Goodwill is allocated to a group of assets so that it can be p tested at a level of relevance that enables its performance to be tracked. Recognised write-downs are definitive and may not be reversed. p

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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2020