CFE - 2006 annual report - Vinci

13. Goodwill
(in thousand Euro) 2006 2005
Acquisition costs
Balance at the end of the previous period 8,152 5,511
Acquisitions through business combinations 1,504 2,733
Adjustments from the identification or changes in identifiable asset
& liability value
9 (92)
Balance at the end of the period 9,665 8,152
Depreciations and impairment
Balance at the end of the previous period (557) (557)
Impairment of the period (533) 0
Balance at the end of the period (1,090) (557)
Net carrying amount
At January, 1 st 7,595 4,954
At December, 31 st 8,575 7,595
The non-allocated goodwill relates to the acquisitions through business combinations at DEME. It refers to the goodwill
generated by the acquisition of the remaining 50% of Geo@Sea (971 thousand Euro) and HSS (533 thousand Euro).
The most important goodwill as per December 31, 2006 are on Roodebeek (8 thousand Euro), Amca (127 thousand Euro),
group Van Wellen (2,733 thousand Euro) and the goodwill from DEME mainly related to DIAP (1,512 thousand Euro), Geo@Sea
(971 thousand Euro) and the group Ecoterres Holding (2,757 thousand Euro) as well as to other entities of the group DEME
(467 thousand Euro).
In accordance with IAS 36 – Impairment of assets, goodwill has been subject to impairment tests as per December 31 2006.
The value of use of the CGU (Cash-Generating Unit) is obtained on the basis of the discounted operating cash flows forecasts
before taxes over a period of 5 years. The CGU’s are evaluated by activity. The group CFE considers DEME as one CGU.
The carrying amount of the goodwill acquired through business combinations is allocated to each Cash-Generating Unit on
a consistent and reasonable manner.
In 2006 and in accordance with IFRS 3 – Business Combinations, the goodwill acquired through the acquisition of HSS
at DEME was submitted to a depreciation test performed according to IAS 36 – Impairment of assets and was completely
depreciated for an amount of 533 thousand Euro.
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