Investor Presentaiton

nuuday Management review Financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Statements .......... 3.1 | Intangible assets (continued) § Accounting policies Goodwill and brands with indefinite use- ful lives are recognised at cost less accu- mulated impairment losses. The carrying amounts of goodwill and brands with indefinite useful lives are tested for impairment annually and whenever events or changes in circumstances indi- cate that the carrying amounts may not be recoverable, and are subsequently written down to the recoverable amounts in the income statement if exceeded by the carrying amounts. Impairment losses-of goodwill are not reversed. For the purpose of impairment testing in the consolidated financial statement, goodwill is allocated to the Group's cash-generating units. The determination of cash-generating units is based on the internal management reporting. Brands with finite useful lives, proprie- tary rights, etc. are measured at cost less accumulated amortisation and im- pairment losses and are amortised on a straight-line basis over their estimated Useful lives. Customer-related assets are measured at cost less accumulated amortisation and impairment losses and are amortised using the diminishing-balance method based on the percentage of churn (5% to 20%) corresponding to the expected pat- tern of consumption of the expected future economic benefits. Development projects, including costs of computer software purchased or devel- oped for internal use, are recognised as intangible assets if the cost can be cal- culated reliably and if they are expected to generate future financial benefits. Costs of development projects include wages, external charges, depreciation and amortisation that are directly at- tributable to the development activities as well as interest expenses in the pro- duction period. Development projects that do not meet the criteria for recognition in the bal- ance sheet are expensed as incurred in the income statement. The main amortisation periods are as follows: Software 3-5 years Development projects in process and intangible assets of indefinite useful lives are tested for impairment at least annu- ally and written down to recoverable amounts in the income statement if exceeded by the carrying amount. Intangible assets are recorded at the lower of recoverable amount and carry- ing amount. Impairment tests on goodwill and other intangible assets with indefinite lives are performed at least annually and, if nec- essary, when events or changes in cir- cumstances indicate that their carrying amounts may not be recoverable. Nuuday Annual Report 2022 58

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