2013 Registration document and annual financial report - page 224

Registration Document 2013
222
Financial Statemements
5
Consolidated Financial Statements And Notes
The main assets and cash generating units for which impairment losses were recognized in 2012 and 2013 were as follows:
A. Impairment of goodwill
(in millions of euros)
2012
2013
HOTELS
(11)
(7)
Upscale and Midscale Hotels
(10)
(5)
Economy Hotels
(1)
(2)
OTHER BUSINESSES
-
-
TOTAL
(11)
(7)
At December 31, 2013, impairment losses resulted from revised
estimates of the recoverable amount of goodwill related to the
French hotel business (€1 million impairment loss), to the German
hotel business (€5 million impairment loss) and to the Dutch hotel
business (€1 million impairment loss).
At December 31, 2012, impairment losses resulted mainly from
revised estimates of the recoverable amount of goodwill related to
the French hotel business (€4 million impairment loss) and to the
German hotel business (€7 million impairment loss).
Sensitivity analysis
The CGUs’ value in use is estimated by the discounted cash flows
method. The discount rate and the growth rate are the main key
assumptions used by the Group to determine the CGUs’ recoverable
amount.
In 2012 and in 2013, analyses showed that, in the case of CGUs
for which no impairment was recorded during the period, only a
substantial, improbable change in the discount rate in the next
twelve months would have caused their recoverable amount to
fall to below their carrying amount.
Sensitivity tests performed on main CGU at December 31, 2013
showed that:
ƒƒ
inGermany, theCGU’s carrying amount would exceed its recoverable
amount if the discount rate increased by 1,230 basis points or
the growth rate to perpetuity was reduced by 4,430 basis points;
ƒƒ
in Asia, the CGU’s carrying amount would exceed its recoverable
amount if the discount rate increased by 1,800 basis points or
the growth rate to perpetuity was reduced by 7,440 basis points;
ƒƒ
inAustralia, the CGU’s carrying amount would exceed its recoverable
amount if the discount rate increased by 470 basis points or
the growth rate to perpetuity was reduced by 730 basis points.
B. Impairment of intangible assets
At December 31, 2013, impairment losses of €(1) million were recorded on intangible assets.
At December 31, 2012, following the periodic review of the recoverable amount of intangible assets, impairment losses were recognized
as shown below:
(in millions of euros)
Australia
Brazil
Sebel
brand
QuayWest
brand
SeaTemple
brand
Quay Grant
et Citigate
brand
Caesar Park
brand
Caesar
Business
brand
Recoverable amount
5
-
-
-
-
-
Impairment loss recognised in profit or loss
(7)
(4)
(1)
(1)
(6)
(4)
In 2012, the Quay West, Sea Temple, Quay Grant and Citigate
brands included in the Mirvac acquisition (see note 2.B.3) and the
Caesar Park and Caesar Business brands included in the acquisition
of Grupo Posadas’ South American hotel portfolio (see note 2.B.4)
were written down in full following the Group’s decision not to use
them.The Sebel brand was partly written down following the Group’s
decision to discontinue its use for certain hotels only.
1...,214,215,216,217,218,219,220,221,222,223 225,226,227,228,229,230,231,232,233,234,...344
Powered by FlippingBook