Your browser is not up to date and is not able to run this publication.
Learn more

MONCLER ANNUAL REPORT AT 31 DECEMBER 2020CONSOLIDATED FINANCIAL STATEMENTS 9392

2.3. BUSINESS COMBINATIONS

Business combinations are accounted under the acquisition method.

Under this method, the identifiable assets acquired and the liabilities assumed are measured initially at their acquisi- tion-date fair values. The costs incurred in a business combi- nation are accounted as expenses in the periods in which the services are rendered.

Goodwill is determined as the excess of the aggregate of the considerations transferred, of any non-controlling inter- ests and, in a business combination achieved in stages, the fair value of previously held equity interest in the acquiree com- pared to the net amounts of fair value of assets transferred and liabilities assumed at the acquisition date. If the fair value of the net assets acquired is greater than the acquisition cost, the difference is recognised directly in the statement of in- come at the acquisition date. Non-controlling interests could be measured either at their fair value at the acquisition date or at the non-controlling interests proportionate share of the identifiable net assets. The election of either method is done for each single business combination.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurred, the Group shall report in the financial statements provisional amounts for the items for which the ac- counting is incomplete. During the measurement period, that shall not exceed one year from the acquisition date, the provi- sional amounts are retrospectively adjusted to reflect new in- formation obtained about facts and circumstances that existed at the acquisition date and, if known, would have affected the measurement of assets and liabilities recognised at that date.

2.4. NON-CURRENT ASSETS AVAILABLE FOR SALE AND DISCONTINUED OPERATIONS

Non-current assets available for sale and discontinued opera- tions 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 re- coverable through a sale transaction instead of continued use. Discontinued operations are operations that: include a separate line of business or a different geo-

graphical area; are part of a single coordinated plan for the disposal of

a separate major line of business or geographical area of activity;

consist of subsidiaries acquired exclusively for the pur- pose of being sold.

In the consolidated income statement, non-current assets held for sale and disposal groups that meet the requirements of IFRS 5 to be defined as discontinued operations , are pre- sented in a single caption that includes both gains and losses, as well as losses or gains on disposal and the related tax ef- fect. The comparative period is subsequently restated in ac- cordance with IFRS 5.

As far as the financial position is concerned, non-cur- rent assets held for sale and disposal groups that meet the

requirements of IFRS 5 are reclassified as current assets and liabilities in the period in which such requirements arise. The comparative financial statements are not restated or reclassified.

2.5. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at acquisition or manufacturing cost, not revalued net of accumulated depre- ciation 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 consolidated income statement on a straight-line basis over the estimated useful lives as reported in the following table:

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 equip- ment represent the difference between the net proceeds and net book value at the date of sale. Disposals are accounted when the relevant transaction becomes unconditional.

2.6. INTANGIBLE ASSETS

GOODWILL

Goodwill arising from business combination is initially recog- nised at the acquisition date as described in the notes related to Business combinations .

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 Lower between lease period and useful life of improvements

Rights of use Lease period

Other fixed assets Depending on market conditions generally within the expected utility to the entity

Goodwill is included within intangible assets with an indefinite useful life, and therefore, is not amortised but subject to im- pairment test performed annually or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. After the initial recognition, goodwill is measured at acquisition cost less accumulated impairment.

As part of the IFRS first time adoption, the Group chose not to apply IFRS 3 Business combinations retrospective- ly regarding acquisitions made prior to the transition date (1 January 2009); consequently, goodwill resulting from ac- quisitions prior to the transition date to IFRS is still record- ed under Italian GAAP, prior to any eventual impairment. For further details please refer to note 2.7 Impairment of non-financial 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 a indefinite useful life and are carried at cost less accumulated impairment. Brands are not amortised but subject to impairment test performed annually or more fre- quently if events or changes in circumstances indicate that the carrying value may not be recoverable. For further details please refer to note 2.7 Impairment of non-financial assets .

INTANGIBLE ASSETS OTHER THAN GOODWILL AND BRANDS

License rights are capitalised as intangible asset and amor- tised on a straight-line basis over their useful economic life. The useful economic life of license rights is determined on a case-by-case basis, in accordance with the terms of the under- lying agreement.

Key money are capitalised in connection with the open- ing of new directly operated store ( DOS ) based on the amount paid. Key money in general have a definite useful life which is generally in line with the lease period. However, in certain circumstances, key money have an indefinite useful life on the basis of legal protection or common practice that can be found in jurisdictions or markets that state that a re- fund could be received at the end of the lease period. In these limited cases, that need to be adequately supported, key mon- ey are not amortised but subject to impairment test at least annually in accordance with what set out in the note related to impairment of non-financial assets.

Software (including licenses and separately identifiable external development costs) is capitalised as intangible as- sets at purchase price, plus any directly attributable cost of preparing that asset for its intended use. Software and oth- er intangible assets that are acquired by the Group and have definite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

AMORTISATION 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 de- scribed in the following table:

2.7. IMPAIRMENT OF NON-FINANCIAL ASSETS

On an annual basis, the Group tests for impairment property, plant and equipment and intangible assets with a definite use- ful life. Whenever events or changes in circumstance indicate that the carrying amount may not be recoverable, an impair- ment loss is recognised for the amount by which the carrying amount exceeds its recoverable amount.

Goodwill and assets with an indefinite useful life are not subject to amortisation and are tested annually or more frequently for impairment, whenever events or changes in circumstance indicate that the carrying amount may not be recoverable.

When the recoverable amount for individual asset cannot be reliably estimated, the Group 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, by applying an appropriate discount rate that reflects market time value of money and the risks inherent to the asset. An impairment loss is recognised for the amount by which the carrying amount exceeds its recoverable amount.

With the exception of impairment losses recognised on goodwill, when the circumstances that led to the loss no longer exist, the carrying amount of the asset is increased to its recoverable amount and cannot exceed the carrying amount that would have been determined had there been no loss in value. The reversal of an impairment loss is recognised immediately in the consolidated income statement.

As of 2019, IFRS 16 requires the recognition of a right of use asset and a liability for the obligation to pay rent in the financial statements. Any impairment of the asset for the right of use must be calculated and recognised in accordance with the provisions of IAS 36. For the purpose of the rights-of-use impairment test, the fol- lowing CGUs have been defined, which coincide with the or- ganisational units responsible for monitoring individual mar- kets ( Regions ): EMEA Region; Americas Region; APAC Region;

Category Depreciation period

License rights Based on market conditions within the licence period or legal limits to use the assets

Key money Based on market conditions generally within the lease period

Software From 3 to 5 years

Other intangible assets

Based on market conditions generally within the period of control over the asset

Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020Moncler - Annual report 2020
Powered by Fluidbook