Moncler Group | Annual Report 2024 Separate Financial Statements 428 Moncler Group | Annual Report 2024 Separate Financial Statements 429
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 indef inite useful life and are carried at cost
less accumulated impairment. Brands are not amortised
but subject to impairment test performed annually or more
frequently if events or changes in circumstances indicate that
the carrying value may not be recoverable.
For further details please refer to note 2.5 “Impairment
of non-f inancial assets".
Intangible assets with a def inite useful life
Software (including licenses and separately identif iable external
de
velopment 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 acquired by the Group and have def inite useful lives are
measured at cost less accumulated amortisation and accumulated
impairment losses.
Amortisation of intangible assets with a def inite useful life
Intangible assets with a def inite 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 classif ied 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 transaction instead of continued use.
Discontinued operations are operations that:
•include a separate line of business or a dif ferent
geographical 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 purpose
of being sold.
In the income statement, non-current assets held for sale
and di
sposal groups that meet the requirements of IFRS 5
to be def ined as “discontinued operations", are presented
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 accordance
with IFRS 5.
As far as the f inancial position is concerned, non-current
assets held for sale and disposal groups that meet the
requirements of IFRS 5 are reclassif ied as current assets
and liabilities in the period in which such requirements arise.
The comparative f inancial statements are not restated
nor reclassif ied.
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
25 Impairment of nonf inancial assets
At least once a year the Company verif ies whether there is any
indication that intangible assets with a def inite useful
life property plant and equipment and investements have
become impaired If such evidence exists the carrying
a
mount of the assets is reduced to its recoverable amount
Assets with an indef inite 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 Company determines the recoverable
am
ount 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 f lows expected
to be derived from the asset or from the cash-generating unit,
gross
of tax ef fects, by applying an appropriate discount rate
that ref lects market time value of money and the risks inherent
t
o 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 income statement.
2.6 Leased assets
On 13 January 2016, the IASB published the new standard IFRS
16 Leases, which replaces IAS 17. This standard was endorsed
by the European Union, with its publication on 9 November
2017. IFRS 16 is ef fective for f inancial statements commencing
on or after 1 January 2019. The new standard eliminates
the dif ference in the recognition of operating and f inance leases,
ev
en despite elements that simplify its adoption, and introduces
th
e concept of control in the def inition of a lease. To determine
whether a contract is a lease, IFRS 16 establishes that the
contract must convey the right to control the use of an identif ied
asset for a given period of time.
At the lease commencement date, the Company recognises
the right of use asset and lease liability. The right of use
asset is initially valued at cost, including the amount of the initial
measurement of the lease liability adjusted for the rent
payments made on or before the commencement date increased
by the initial direct costs incurred and an estimate
of costs
to be incurred by the lessee in dismantling and removing
the underlying asset restoring the site on which it is located
or restoring the underlying asset to the condition required
by the terms and conditions of the lease net of the received
lease incentives
The right of use asset is amortised on a straightline basis
from the commencement date to the end of the lease term
unless the lease transfers ownership of the underlying asset
to the Company at the end of the lease term In this case the right
of use asset will be amortised over the useful life of the underlying
asset determined on the same basis as that of property