165 SEPARATE FINANCIAL STATEMENTS164 SEPARATE FINANCIAL STATEMENTS MONCLER GROUP 2022

AMORTIZATION OF INTANGIBLE ASSETS WITH A DEFINITE USEFUL LIFE Intangible assets with a definite useful life are amortised on a straight line basis over their estimated useful lives as described in the following table:

Category Depreciation period License rights Based on market conditions within the licence period or legal limits to use the assets Software From 3 to 5 years Other intangible assets Based on market conditions generally within the period of control over the asset

2.3 NON-CURRENT ASSETS AVAILABLE FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets available for sale and discontinued operations are classified as available for sale when their values are recoverable mainly through a probable sale transaction. In such conditions, they are valued at the lower of their carrying value or fair value, net of cost to sell if their value is mainly recoverable through a sale trans- action instead of continued use.

Discontinued operations are operations that: include a separate line of business or a different geographi-

cal area; are part of a single coordinated plan for the disposal of a sep-

arate major line of business or geographical area of activity; consist of subsidiaries acquired exclusively for the purpose

of being sold.

In the income statement, non-current assets held for sale and dis- posal groups that meet the requirements of IFRS 5 to be defined as discontinued operations , are presented in a single caption that in- cludes both gains and losses, as well as losses or gains on disposal and the related tax effect. The comparative period is subsequently restated in accordance with IFRS 5.

As far as the financial position is concerned, non-current as- sets held for sale and disposal groups that meet the requirements of IFRS 5 are reclassified as current assets and liabilities in the pe- riod in which such requirements arise. The comparative financial statements are not restated nor reclassified.

2.4 INVESTMENTS

Investments in subsidiaries, associates and others are accounted for as follows:

at cost, inclusive of any additional charges; or in accordance with IFRS 9.

The Company recognises dividends from subsidiaries, associates and others in its income statement when the right to receive such dividends has materialised.

2.5 IMPAIRMENT OF NON-FINANCIAL ASSETS

At least once a year the Company verifies whether there is any in- dication that intangible assets with a definite useful life, property, plant and equipment and investments have become impaired. If such evidence exists, the carrying amount of the assets is reduced to its recoverable amount.

Assets with an indefinite useful life are not subject to amor- tisation and are tested annually or more frequently for impairment, whenever events or changes in circumstance indicate that the car- rying amount may not be recoverable.

When the recoverable amount for individual asset cannot be reliably estimated, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher of an asset s fair value less costs to sell and value-in-use. The Group determines the value in use as the present value of future cash flows expected to be derived from the asset or from the cash-generating unit, gross of tax effects,

The accounting principles set out below have been applied consis- tently for fiscal year 2022 and the prior year.

2.1 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at acquisition or manu- facturing cost, not revalued net of accumulated depreciation and impairment losses ( impairment ). Cost includes original purchase price and all costs directly attributable to bringing the asset to its working condition for its intended use.

DEPRECIATION Depreciation of property, plant and equipment is calculated and recognised in the income statement on a straight-line basis over the estimated useful lives as reported in the following table:

Category Depreciation period Land No depreciation Buildings From 25 to 33 years Plant and equipment From 8 to 12 years Fixtures and fittings From 5 to 10 years Electronic machinery and equipment From 3 to 5 years Leasehold improvements Useful life of improvements Rights of use Lease period Other fixed assets Depending on market conditions generally within the expected utility to the entity

Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will take ownership of the asset by the end of the lease term.

Depreciation methods, useful lives and residual value are re- viewed at each reporting period and adjusted if appropriate.

GAIN/LOSSES ON THE DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT Gains and losses on the disposal of property, plant and equipment represent the difference between the net proceeds and net book value at the date of sale. Disposals are accounted when the rele- vant transaction becomes unconditional.

2.2 INTANGIBLE ASSETS

BRANDS Separately acquired brands are shown at historical cost. Brands acquired in a business combination are recognised at fair value at the acquisition date.

Brands have an indefinite useful life and are carried at cost less accumulated impairment. Brands are not amortised but sub- ject to impairment test performed annually or more frequently if events or changes in circumstances indicate that the carrying val- ue may not be recoverable.

For further details please refer to note 2.5 Impairment of non-financial assets .

INTANGIBLE ASSETS WITH A DEFINITE USEFUL LIFE Software (including licenses and separately identifiable external development costs) is capitalised as intangible asset at purchase price, plus any directly attributable cost of preparing that asset for its intended use. Software and other intangible assets that are ac- quired by the Group and have definite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

2 SIGNIFICANT ACCOUNTING PRINCIPLES