178 348
Consolidated Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
178
2.
INTANGIBLE ASSETS
Details of this line item and related movements are as follows:
Patents
Concessions,
Goodwill
Software Other intangible
Intangibles in Total
licences, trademarks
assets
progress
and similar rights
and advances
Balance at 31 December 2013 (*)
19
5
377
32
133
22 588
Movements in 2014:
- Business combinations
-
-
-
-
-
-
-
- Investments
-
-
-
-
1
8
9
- Internally generated intangible assets
-
-
-
4
-
5
9
- Disposals
-
-
-
-
-
-
-
- Amortisation
(7)
(1)
-
(7)
(15)
-
(30)
- Impairment
-
-
-
-
(2)
(19)
(21)
- Currency translation differences
1
-
3
-
-
-
4
- Other
-
1
-
4
-
(3)
2
Total movements
(6)
-
3
1
(16)
(9)
(27)
Balance at 31 December 2014
13
5
380
33
117
13
561
Of which:
- Historical cost
46
55
400
84
196
32
813
- Accumulated amortisation and impairment (33)
(50)
(20)
(51)
(79)
(19)
(252)
Net book value
13
5
380
33
117
13
561
reporting date; this has resulted in the recognition of Euro
2 million in impairment for the Italy CGU and Euro 5 million
for the Oceania CGU. In this particular case, the cash flow
forecasts for 2015-2017 have been determined by projecting
forward the cash flows expected by management in 2015 (at
constant growth rates); the WACC (Weighted Average Cost
of Capital as defined in the paragraph “Goodwill impairment
test”), used to discount cash flows for determining value in
use for the Italy CGU is 6.7% and 7.9% for the Oceania CGU.
The perpetuity growth rate (G) projected after 2017 is 2%.
Furthermore, the Group has tested other assets for impai-
rment which, although belonging to larger CGUs for which
there was no specific evidence of impairment, presented
impairment indicators in relation to particular market cir-
cumstances. This has led to the recognition of Euro 11 million
in additional impairment losses in 2014, mainly due to:
• impairment of Euro 5 million recognised against the
Wuppertal site (Germany);
• impairment of Euro 5 million recognised against the
rotating platform loaded aboard the AMT Explorer cable
barge, which capsized at sea in July 2014. The insurance
reimbursement for the same amount has been recogni-
sed in “Other income”.
In addition, the creation of territorial organisations has led
to the redefinition of the CGUs; this has meant that the
conditions no longer applied under which some assets had
been impaired in previous years, resulting in the write-back
of Euro 18 million to income. Given this change, the Group has
verified that if impairment had been calculated on the basis
of the previous structure, the effects would not have been
substantially different from those recognised in the 2014
income statement.
“Buildings” include assets under finance lease with a net
book value of Euro 17 million at 31 December 2014, largely
unchanged since 31 December 2013. The maturity dates of
finance leases are reported in Note 12. Borrowings from banks
and other lenders; such leases generally include purchase
options.
(in millions of Euro)
(*) The previously published prior year consolidated financial statements have been restated following the adoption of IFRS 10 and IFRS 11. Further details can
be found in Section C. Restatement of comparative figures.