Moncler Group | Annual Report 2024 466  | 

2

Impairment test on the brand and the goodwill related to Stone Island CGU

Description of the

key audit matter

The consolidated financial statements of the Group as at December 31,

2024 show “Brands and other intangible assets – net” amounting to

Euro 1,107 million and “Goodwill” amounting to Euro 603 million. These

captions include the brand and goodwill allocated to the Stone Island

cash generating unit (“CGU”) for the Euro 775 million and Euro 448

million respectively. These assets are considered intangibles with an

indefinite useful life and are therefore not amortized; nevertheless, as

required by the International Accounting Standard “IAS 36 - impairment

of assets”, those are tested for impairment at least annually comparing

the recoverable amount of the CGU - determined according to the value

in use methodology - and the book value of its net invested capital,

which includes the above-mentioned brand and goodwill among fixed

assets.

Management evaluation process is articulated and is based on

assumptions regarding, among other things, forecasting CGU’s

expected cash flows and determining an appropriate discount rate

(WACC) and long-term growth rate (g-rate). These assumptions are

influenced by future expectations about the Stone Island business as

well as by market conditions.

In light of the magnitude of the goodwill and brand value recorded in the

consolidated financial statements pertaining to the Stone Island CGU,

the level of judgement involved in the estimates pertaining to the

determination of CGU future cashflows and the key parameters of the

impairment model, we considered the impairment test a key audit

matter of the consolidated financial statements.

Note 5.2 of the consolidated financial statements provides information

on the tests carried out in respect of intangible assets, including a

sensitivity analysis which illustrates the effects of changes in key

parameters used for the impairment test.

Audit procedures

performed

We have examined how management determined the CGU’s value in

use, analyzing methods and assumptions used in developing the

impairment test.

As part of our audit, we have, among others, carried out the following

procedures also with the support of experts

 detection and understanding of the process adopted by Moncler

Group in executing the impairment test

 analysis of the reasonableness of main assumptions adopted in

forecasting cashflows also with analysis of sector data and

information obtained from management

 comparison of actual results with management forecasts in order to

assess the nature of deviations and the reliability of the planning

process

()

-(-);

’;

’

;

.

.

../,,

,

,

.

,

’,,,

.

,,

’.

’

,,

’.

,