Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ACQUISTIONS AND CAPITAL EXPENDITURE
4.3 INTANGIBLE ASSETS
Intangible assets, MEUR
Opening gross acquisition cost
Opening accumulated amortization and impairment
Opening net book value
Opening net book value
Translation differences
Increase
Decrease
Reclassifications
Companies acquired (note 4.1)
Amortization
Closing net book value
Closing gross acquisition cost
Closing accumulated amortization and impairment
Closing net book value
Intangible assets, MEUR
Opening gross acquisition cost
Opening accumulated amortization and impairment
Opening net book value
Opening net book value
Translation differences
Increase
Decrease
Reclassifications
Companies acquired (note 4.1)
Amortization
Jan 1-Dec 31, 2021
Maintenance contracts
Other
Total
439.5
261.8
701.3
-249.5
-228.6
190.0
33.2
-478.1
223.2
190.0
33.2
223.2
6.5
1.7
8.3
2.8
8.7
11.5
-1.4
-1.4
0.0
0.0
22.7
0.2
22.9
-36.4
-11.3
-47.7
185.8
31.1
216.9
471.6
-285.9
185.8
260.1
731.7
-229.0
-514.9
31.1
216.9
Jan 1-Dec 31, 2020
Maintenance contracts
Other
Total
416.3
273.0
-212.7
-228.3
203.5
44.7
689.2
-441.0
248.2
203.5
44.7
248.2
-3.5
-2.0
-5.5
0.1
9.3
9.4
-0.1
-0.1
-8.3
-8.3
26.6
1.3
27.9
-36.8
-11.6
-48.4
190.0
33.2
223.2
Closing net book value
Closing gross acquisition cost
439.5
261.8
701.3
Closing accumulated amortization and impairment
-249.5
-228.6
-478.1
Closing net book value
190.0
33.2
223.2
Accounting principles
Intangible assets
Intangible assets identified in connection with acquisitions
are amortized on a straight-line basis over their expected
useful lifetime. KONE often acquires small elevator,
escalator and door service companies, where the excess
of consideration transferred over the net assets of the
acquiree as at closing is allocated to the acquired
maintenance contracts. The acquired maintenance
contracts are typically amortized over ten years.
Intangible assets also include expenditure on acquired
patents, trademarks and licenses, including acquired
software licenses. These assets are amortized on a
straight-line basis over their expected useful lifetime, which
does not usually exceed five years.
Impairment of assets
The carrying amounts of non-current intangible assets and
tangible assets are reviewed for impairment at each
reporting date or whenever there is indication of that the
carrying value of the asset may not be recoverable.
Impairment test involves estimating the recoverable
amount of the asset, subject to testing. The recoverable
amount is the higher of the asset's fair value less cost of
disposal and the value in use. An impairment loss is
recognized in the statement of income whenever the
carrying amount exceeds the recoverable amount.
A previously recognized impairment loss is reversed
only if there has been a significant change in the estimates
used to determine the recoverable amount, but not,
however, to an amount higher than the carrying amount
that would have been determined without the impairment
loss recognized in prior years, deducted by accumulated
depreciation.
61
KONE ANNUAL REVIEW 2021View entire presentation