Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 241 Intangible assets, property and equipment, investment property Note 6 Intangible assets 6.1 Accounting principles Goodwill Goodwill is initially recognised on business combinations as explained in Note 3.1. In accordance with IAS 36 – Impairment of Assets, goodwill recognised on business combinations is not amortised but is tested for impairment every year, or more frequently if there is an indication that its carrying amount may not be recovered, by the method described in Note 6.3. Other intangible assets Intangible assets consist mainly of software and other intangible assets related to the stores. Separately acquired intangible assets are initially recognised at cost and intangible assets acquired in business combinations are recognised at fair value (Note 3.1). Software is amortised by the straight-line method over periods ranging from one to eight years. Goodwill, which constitutes the main intangible asset, is reported separately from other intangible assets in the statement of financial position. (in millions of euros) December 31, 2017 December 31, 2016 Goodwill, net 7,977 8,640 Other intangible assets 1,364 1,266 INTANGIBLE ASSETS, NET 9,341 9,906 Goodwill 6.1.1 The recoverable amount of goodwill is generally monitored at the level of the cash-generating units (CGUs) represented by the countries in which the Group conducts its business through its integrated store networks. The 663 million-euro decrease in net goodwill in 2017 was mainly due to impairment losses recognised for 707 million euros (Notes 2.5 and 6.3). (in millions of euros) Net goodwill at December 31, 2016 Acquisitions Disposals Impairment Other movements Translation adjustment Net goodwill at December 31, 2017 France 4,775 39 - - - - 4,814 Belgium 956 - - - - - 956 Spain 862 90 - - - - 952 Brazil 575 - - - - (77) 498 Italy (1) 960 - - (707) - - 253 Poland 238 - - - - 13 252 Argentina 53 - - - - (13) 39 Other countries 221 - - - - (9) 213 TOTAL 8,640 129 - (707) - (85) 7,977 Impairment recognised in the period concerns goodwill allocated to countries (operating segments) for 700 million euros; the remaining balance (1) of 7 million euros relates to goodwill allocated to stores.