Universal Registration Document 2022

Introduction

10.1 Goodwill

Accounting principles and methods
Determination of goodwill

In application of IFRS 3, “Business combinations”(see note 3), goodwill is the difference between:

  • the sum of the following items:
    • the acquisition-date fair value of the price paid to acquire control;
    • the value of non-controlling interests in the entity acquired; and
    • for acquisitions achieved in stages, the acquisition-date fair value of the Group’s share in the acquired entity before it acquired control; and
  • the net value of the assets acquired and liabilities assumed, measured at fair value at the acquisition date.

When this difference is negative it is immediately included in net income. The fair values of assets and liabilities and the resulting goodwill are finalised within twelve months of the acquisition.

Measurement and presentation of goodwill

Goodwill on acquisition of subsidiaries is disclosed separately in the balance sheet. Impairment on this goodwill is reported under the heading “Impairment” in the income statement. After initial recognition, goodwill is carried at cost less any impairment recognised.

Goodwill on acquisition of associates and joint ventures is included in the investment’s net book value. Impairment on this goodwill is included under the heading “Share in income of associates and joint ventures”.

Goodwill is not amortised, but impairment tests are carried out as soon as there is an indication of possible loss of value, and at least annually, as described in note 10.8.

In 2022, goodwill primarily related to EDF Energy (€6,541 million, net of impairment booked in 2022) and Framatome (€1,448 million). The breakdown by operating segment is presented in note 4.1.

Changes in goodwill in 2022 and 2021 were as follows:

(in millions of euros) 31/12/2022 31/12/2021
Net book value at opening date Net book value at opening date31/12/202210,945 Net book value at opening date31/12/202110,265
Acquisitions

Acquisitions

31/12/2022

154

Acquisitions

31/12/2021

143
Disposals

Disposals

31/12/2022

(2)

Disposals

31/12/2021

(1)
Impairment (note 10.8)

Impairment (note 10.8)

31/12/2022

(1,178)

Impairment (note 10.8)

31/12/2021

-
Translation adjustments

Translation adjustments

31/12/2022

(379)

Translation adjustments

31/12/2021

537
Other changes

Other changes

31/12/2022

(27)

Other changes

31/12/2021

1
NET BOOK VALUE AT CLOSING DATE NET BOOK VALUE AT CLOSING DATE31/12/20229,513 NET BOOK VALUE AT CLOSING DATE31/12/202110,945
Gross value at closing date

Gross value at closing date

31/12/2022

11,650

Gross value at closing date

31/12/2021

11,715
Accumulated impairment at closing date

Accumulated impairment at closing date

31/12/2022

(2,137)

Accumulated impairment at closing date

31/12/2021

(770)

The changes in goodwill in 2022 primarily related to:

  • impairment of €(1,176) million on the goodwill of EDF Energy;
  • translation adjustments (€(379) million), mainly resulting from the decline of the pound sterling against the Euro.

The changes in goodwill in 2021 primarily related to:

  • the acquisition of Rolls Royce Civil Nuclear I&C from Framatome for €92 million (see note 3.1);
  • translation adjustments (€537 million) resulting chiefly from the rise of thepound sterling against the Euro.