| Moncler Group | Annual Report 2024 Separate Financial Statements 440
4.2 Impairment of intangible assets
with an indef inite useful life
The caption Brands, which has an indef inite useful life, has not been
amortised, but has been tested for impairment by management.
The impairment tests on the Moncler brand and on the
Stone Island brand were performed by comparing its carrying
value with that derived from the discounted cash f low method
applying the Royalty Relief Method, based on which the cash f lows
are linked to the recognition of a royalty percentage applied
to revenues that the brand is able to generate.
For the 2024 valuation of the Moncler and Stone Island
brand and goodwill, the expected cash f lows and revenues are
based on the 2025 Budget approved by the Board of Directors
on 12 December 2024, for the year 2026 on the Business Plan
2024–2026 approved by the Board of Directors on 14 December
2023 and for 2027
–
2029 on the basis of management estimates
consistent with the expected development plans.
The “g" rate used was 2.5%.
The discount rate was calculated using the Weighted Average
Cost of Capital (WACC), by weighting the expected rate
of return on invested capital, net of hedging costs from a sample
of companies within the same industry. The calculation took
into account the implications of the updated macroeconomic
context on interest rates. The weighted average cost of capital
(
WACC) was calculated at 8.5% for the Moncler brand and at 9.0%
for Stone Island.
The results of the sensitivity analysis indicated that the carrying
amount of the Moncler brand is conf irmed in all scenarios
of reasonable changes of the benchmarks The Stone Island brand
up to a WACC of 96 all other parameters being equal
ACCUMULATED AMORTISATION BRANDS AND OTHER INTANGIBLE ASSETS
EUR/000 Brands Software Other intangible assets TOTAL
1 January 2023 0(483)(7,721)(8,204)
Depreciation 0(41)(898)(939)
Disposals 0 0 0 0
Other movements, including transfers
0 0 0 0
31 DECEMBER 2023 0(524)(8,619)(9,143)
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