24
A variation of 0.5% in cumulative annual growth would give rise to a change in value of
EUR 9 million, while a 0.5% increase in the discount rate would give rise to a change of
EUR 13 million, and a 0.5% decrease in the discount rate would result in a change of EUR
15 million. Zero perpetual growth was used. An increase of 0.5% would give rise to an
increase in value of EUR 16 million and a decrease of 0.5% would result in a decrease in
value of EUR 14million.
Computer software
The acquisition and development costs incurred vis-à-vis third parties in relation to the
basic computer systems used in the Group's management are recognised with a charge to
“Other Intangible Assets” in the consolidated balance sheet.
Computer system maintenance costs are recognised with a charge to the consolidated
income statement for the year inwhich they are incurred.
Computer software is amortised on a straight-line basis over a period of between three
and five years from the entry into service of each application, on the basis of its estimated
useful life.
Audiovisual productions
“Audiovisual Productions” relates to the costs incurred by the Group in relation to film
productions. The carrying amount includes the production costs incurred in relation to the
remuneration paid to co-producers and the launch and initial marketing costs. The Group
begins to amortise the films from the date of commercial release or from the date on
which the rating certificate is obtained. Each film production is amortised on an annual
basis over the first commercial cycle of the film, which the Group considers to be four
years. Accordingly, at each year-end the amortised percentage until that date is
approximately the same as the percentage of the income generated until then with
respect to the present value of the estimated total income for that period. The Group
recognises the appropriate impairment losses to write down the carrying amounts of
these film productions when it is considered necessary based on future marketing
expectations.
Since the activities relating to the acquisition, production and marketing of audiovisual
productions are part of the Group's normal operations, the amortisation charges to
consolidated profit or loss are included under “Programme Amortisation and Other
Procurements”. Acquisitions of productions are classified as investment activities in the
statement of cash flows since the related amounts are recovered over various years.
d)
Property, plant and equipment
Land and buildings acquired for the performance of the Group's business activity or for
administrative purposes are stated in the consolidated balance sheet at acquisition or
production cost, less any accumulated depreciation and any recognised impairment losses.
Replacements or renewals of complete items that lead to a lengthening of the useful life of
the assets or to an increase in their economic capacity are recognised as additions to
property, plant and equipment, and the items replaced or renewed are derecognised.
Periodicmaintenance, upkeep and repair expenses are recognised in the income statement
on an accrual basis as incurred.
