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170 2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
17.3
IMPAIRMENT OF GOODWILL AND SENSITIVITY ANALYSIS
Asset impairment policies are described in Note 2 – Summary of
Significant Accounting Policies.
The impairment tests performed on goodwill and other intangible
assets in 2014 and 2013 in accordance with IAS 36 do not lead to the
recognition of any impairment losses on these assets.
The perpetual growth rates and discount rates (corresponding to the
weighted average cost of capital –WACC) applied for impairment testing
purposes in 2013 and 2014 are presented below by CGU:
Country
2014
2013
After-tax
discount rate
Perpetual
growth rate
After-tax
discount rate
Perpetual
growth rate
France
6.1%
2.0%
6.2%
2.0%
Spain
6.5%
2.0%
7.6%
2.0%
Italy
6.5%
1.9%
7.3%
1.8%
Belgium
5.9%
2.0%
6.4%
2.0%
Poland
7.6%
2.3%
7.8%
2.3%
Romania
8.2%
2.1%
9.2%
2.3%
Brazil
11.1%
3.6%
10.3%
3.5%
Argentina
20.3%
7.7%
20.7%
6.2%
China
9.3%
3.0%
9.2%
3.0%
Taiwan
7.1%
2.0%
6.9%
2.0%
17.3.1 CGUS FOR WHICH THE RECOVERABLE AMOUNT OF GOODWILL
WAS CLOSE TO THE CARRYING AMOUNT
The tests carried out at December 31, 2014 did not reveal any impairments
of goodwill.
For the Italy CGU, the recoverable amount of goodwill was found to be
close to – but still greater than – the carrying amount.
Sensitivity analyses were performed to determine the changes in the main
assumptions that would lead to an impairment loss being recognized.
The amounts thereafter represent the difference between the recoverable
amount and the carrying amount. The “-” sign indicates that the scenario
would have led to the recognition of an impairment loss for the amount
shown.
ITALY
Sensitivity to change in WACC and perpetual growth rate
WACC (%)
-1.0% -0.50% 0.00% 0.50%
1.0%
Perpetual growth (%)
-0.50%
719
435
208
22
-134
-0.25%
880
562
309
105
-65
0.00% 1,064
703
422
196
11
0.25% 1,275
863
547
296
93
0.50% 1,520
1,046
687
408
183