€ million |
Intangible assets without goodwill |
(thereof internally generated intangible assets) |
|---|---|---|
Acquisition or production costs |
|
|
As of 1/10/2020 |
2,069 |
(1,229) |
Currency translation |
3 |
(0) |
Additions to consolidation group |
7 |
(0) |
Additions |
138 |
(115) |
Disposals |
−9 |
(−1) |
Reclassifications in accordance with IFRS 5 |
−15 |
(0) |
Transfers |
5 |
(−3) |
As of 30/9/2021 and 1/10/2021 |
2,199 |
(1,340) |
Currency translation/hyperinflation |
36 |
(3) |
Additions to consolidation group |
21 |
(0) |
Additions |
150 |
(123) |
Disposals |
−62 |
(−21) |
Reclassifications in accordance with IFRS 5 |
0 |
(0) |
Transfers |
−3 |
−33 |
As of 30/9/2022 |
2,340 |
(1,412) |
Depreciation |
|
|
As of 1/10/2020 |
1,493 |
(933) |
Currency translation |
2 |
(0) |
Additions, scheduled |
145 |
(86) |
Additions, impairment |
9 |
(7) |
Disposals |
−8 |
(−2) |
Reclassifications in accordance with IFRS 5 |
−12 |
(0) |
Reversals of impairment losses |
0 |
(0) |
Transfers |
2 |
(−1) |
As of 30/9/2021 and 1/10/2021 |
1,631 |
(1,023) |
Currency translation/hyperinflation |
17 |
(3) |
Additions, scheduled |
157 |
(97) |
Additions, impairment |
20 |
(1) |
Disposals |
−58 |
(−19) |
Reclassifications in accordance with IFRS 5 |
0 |
(0) |
Reversals of impairment losses |
0 |
(0) |
Transfers |
0 |
(−21) |
As of 30/9/2022 |
1,768 |
(1,084) |
Carrying amount as of 1/10/2020 |
576 |
(296) |
Carrying amount as of 30/9/2021 |
568 |
(317) |
Carrying amount as of 30/9/2022 |
572 |
(328) |
In addition to the currency translation of the financial statements of foreign operations, the item ‘currency translation/hyperinflation’ shows the effects of the first-time adoption of IAS 29 as well as the adjustment to the purchasing power ratios of the Turkish lira in the current financial year. The effects from the first-time adoption of IAS 29, which were recognised in the currency translation differences from translating the financial statements of foreign operations at the transition date of 1 October 2021, resulted in assets increasing by €1 million.
The other intangible assets have both determinable and indeterminable expected useful lives. Intangible assets with a determinable expected useful life are subject to scheduled depreciation/amortisation. Intangible assets with an indeterminable useful life are subjected to annual impairment tests.
The carrying amount of acquired trademark rights amount to €98 million (30/9/2021: €101 million). They mainly relate to Classic Fine Foods and Pro á Pro France. Trademark rights generally represent assets with an indefinite useful life. The expected useful life of the trademark rights is indeterminable, because METRO can use these rights without restrictions and abandoning them is not envisaged in the future. The carrying amounts of these brands are reviewed annually for units to which goodwill is not simultaneously allocated in line with the procedure for the respective purchase price allocations using the licence price analogy method. Level 3 input parameters of the fair value hierarchy are applied here. This involves applying licence rates of between 0.2% and 1.0% and WACC of between 6.2% and 6.8%. The mandatory annual impairment test confirmed the recoverability of the carrying amounts. In addition, sensitivity analyses were carried out, assuming a 10% reduction in the sustainable expected sales of the respective units or a 10% increase in WACC. These scenarios would not result in significant impairment. The economic useful life of the rights to the Rungis Express brand has been considered definite since financial year 2021/22; in addition to scheduled amortisation, there was an impairment of €9 million. The brand value will be transferred over time to an alternative brand; however, it is not eligible for capitalisation due to the lack of third-party acquisition.
Additions in the amount of €150 million (2020/21: €138 million) concern internally generated software at €123 million (2020/21: €115 million), software purchased from third parties and still in development at €13 million (2020/21: €12 million), and concessions, rights and licences at €13 million (2020/21: €11 million).
Research and development expenses recognised in expenses essentially concern internally generated software and amounted to €42 million (2020/21: €43 million).
As in the previous year, there are no material restrictions on title or right to dispose of intangible assets. Purchasing obligations for intangible assets amounting to €2 million (30/9/2021: €1 million) were recorded.