Consolidated Financial Statements >
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES
172
| 2012 annual report prysmian group
B.8
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE
ASSETS
Property, plant and equipment and finite-life intangible
assets are analysed at each reporting date for any evidence
of impairment. If such evidence is identified, the recoverable
amount of these assets is estimated and any impairment loss
relative to carrying amount is recognised in profit or loss. The
recoverable amount is the higher of the fair value of an asset,
less costs to sell, and its value in use, where the latter is the
present value of the estimated future cash flows of the asset.
The recoverable amount of an asset which does not generate
largely independent cash flows is determined in relation
to the cash-generating unit to which the asset belongs.
In calculating an asset’s value in use, the expected future
cash flows are discounted using a discount rate reflecting
current market assessments of the time value of money, in
relation to the period of the investment and the specific risks
associated with the asset. An impairment loss is recognised
in the income statement when the asset’s carrying amount
exceeds its recoverable amount. If the reasons for impairment
cease to exist, the asset’s carrying amount is restored with the
resulting increase recognised through profit or loss; however,
the carrying amount may not exceed the net carrying amount
that this asset would have had if no impairment had been
recognised and the asset had been depreciated/amortised
instead.
In the case of the Prysmian Group, the smallest CGU of the
Energy operating segment can be identified on the basis
of location of the registered office of the operating units
(country)
(1)
, whilst for the Telecom operating segment, the
smallest CGU is the operating segment itself.
(1)
If the operating units of one country almost exclusively serve other countries, the smallest CGU is given by the group of these countries.
