15. Intangible assets
(in millions of euros) | Goodwill | Software | Total |
Composition as at 1 January 2021 | |||
Cost | 39 | 806 | 845 |
Accumulated amortisation and impairments | - | 469 | 469 |
Carrying amount as at 1 January 2021 | 39 | 337 | 376 |
Changes in 2021 | |||
Investments | - | 138 | 138 |
Deconsolidation | -28 | -57 | -85 |
Depreciation and amortisation | - | -74 | -74 |
Disposals | - | - | - |
Impairment losses | - | -1 | -1 |
Reversal of impairments | - | 3 | 3 |
Other movements | - | -12 | -12 |
Total changes during the financial year | -28 | -3 | -31 |
Composition as at 31 December 2021 | |||
Cost | 11 | 827 | 838 |
Accumulated amortisation and impairments | - | 493 | 493 |
Carrying amount as at 31 December 2021 | 11 | 334 | 345 |
Changes in 2022 | |||
Investments | - | 46 | 46 |
Business acquisitions | - | 28 | 28 |
Held for sale | -11 | -1 | -12 |
Depreciation and amortisation | - | -133 | -133 |
Disposals | - | -2 | -2 |
Impairment losses | - | - | - |
Reversal of impairments | - | 33 | 33 |
Other movements | - | 14 | 14 |
Total changes during the financial year | -11 | -15 | -26 |
Composition as at 31 December 2022 | |||
Cost | - | 898 | 898 |
Accumulated amortisation and impairments | - | 579 | 579 |
Carrying amount as at 31 December 2022 | - | 319 | 319 |
For information on the reversal of impairments, please refer to note 16.
For an explanation of the change of accounting estimate, please refer to the general information.
Accounting policy
Goodwill
All business combinations are accounted for using the acquisition method. Goodwill is the amount resulting from the acquisition of subsidiaries. Goodwill represents the difference between the cost of the acquisition and the fair value of the identifiable assets and liabilities acquired at the time of the acquisition. Goodwill is measured at cost less accumulated impairment.
Negative goodwill arising on an acquisition is recognised directly in the income statement.
Other intangible assets
Other intangible assets with a finite life acquired or produced by the Group are stated at cost less accumulated amortisation and accumulated impairment losses.
After initial recognition, expenditure on capitalised intangible assets is only capitalised if it leads to an increase in the future economic benefits embodied in the specific asset involved. All other expenditure, including internally generated goodwill and trademarks, is recognised as an expense in the income statement as incurred.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful life of the intangible assets, except goodwill, from the date they are available for use. The estimated useful lives are as follows:
-
Software 3 - 10 years