Other purchased management information software packages are amortized on a straight-line basis over three years. In addition to expenses incurred in the acquisition of software licenses, the Group also activates direct software development and conﬁguration costs, comprising personnel costs for personnel involved in development of the software and external expenses directly relating to these items. Patents and Trademarks Patents, trademarks and associated costs are amortized on a straight-line basis over three to ten years from the date of registration. The amortization period reﬂects the rate of consumption by the company of the economic beneﬁts generated by the asset. The Group is not dependent on any patents or licenses that it does not own. In terms of intellectual property, no patents or other industrial property rights belonging to the Group are currently under license to third parties. The rights held by the Group, notably with regard to software speciﬁc to its business as a software developer and publisher, are used under license by its customers within the framework of sales activity. The Group does not activate any internally-generated expense relating to patents and trademarks. Other Other intangible assets are amortized on a straight-line basis over two to ﬁve years.
NOTE 2.5 PROPERTY, PLANT AND EQUIPMENT
of the speciﬁc asset to which they are attached. All other costs are expensed directly at the time they are incurred. Financial expense is not included in the cost of acquisition of tangible assets. Investment grants received are deducted from the value of tangible assets. Depreciation is computed on this net amount. Losses or gains on disposals of assets are recognized in the income statement under caption “Selling, general and administrative expenses”. Depreciation is computed on the straight-line method over their estimated useful lives as follows: – buildings and building main structures: 20-35 years; – secondary structures and building installations: 15 years; – ﬁxtures and installations: 5-10 years; – land arrangements: 5-10 years; – technical installations, equipment and tools: 4-10 years; – ofﬁce equipment and computers: 3-5 years; – ofﬁce furniture: 5-10 years.
NOTE 2.6 FIXED ASSETS IMPAIRMENT IMPAIRMENT TESTS
When events or changes in the market environment, or internal factors, indicate a potential impairment of value of goodwill, other intangible assets or property, plant and equipment, these are subject to thorough reviewing. Impairment tests are carried out systematically at least once a year. Goodwill Goodwill is tested for impairment by comparing its carrying value with the recoverable amount of the Cash Generating Unit (CGU) it has been allocated to, which is deﬁned as the higher of the asset’s fair value less costs to sell and value in use determined as the present value of future cash ﬂows attached to them, excluding interest and tax. The results utilized are derived from the Group’s three-year plan. Beyond the time frame of the three-year plan, cash ﬂows are projected to inﬁnity, the assumed growth rate being dependent on the growth potential of the markets and/or products concerned by the impairment test. The discount rate is computed under the Weighted Average Cost of Capital (WACC) method, the cost of capital being determined by applying the Capital Asset Pricing Model (CAPM). If the impairment test reveals an impairment of value relative to the carrying value, an irreversible impairment loss is