Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Intangible Assets

v3.22.1
Intangible Assets
12 Months Ended
Dec. 31, 2021
Disclosure Of Intangible Assets [Abstract]  
Intangible Assets

17. Intangible assets

Changes in intangible assets for the year ended December 31, 2021 are as follows:

 

(EUR thousand)

 

Development
costs

 

 

Industrial
patents and
intellectual
property
rights

 

 

Concessions,
licenses,
trademarks
and similar
rights

 

 

Intangible
fixed assets
in process
and
advances

 

 

Other
intangible
assets

 

 

Total

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2020

 

 

13,505

 

 

 

11,291

 

 

 

24,973

 

 

 

3,554

 

 

 

10,851

 

 

 

64,174

 

Additions

 

 

1,673

 

 

 

2,145

 

 

 

132

 

 

 

1,912

 

 

 

577

 

 

 

6,439

 

Reclassifications

 

 

1,891

 

 

 

1,646

 

 

 

302

 

 

 

(3,863

)

 

 

24

 

 

 

 

Exchange differences

 

 

44

 

 

 

(222

)

 

 

(37

)

 

 

(15

)

 

 

(500

)

 

 

(730

)

At December 31, 2020

 

 

17,113

 

 

 

14,860

 

 

 

25,370

 

 

 

1,588

 

 

 

10,952

 

 

 

69,883

 

Additions

 

 

112

 

 

 

1,298

 

 

 

345

 

 

 

3,688

 

 

 

46

 

 

 

5,489

 

Disposals

 

 

(1,153

)

 

 

(138

)

 

 

 

 

 

(362

)

 

 

(91

)

 

 

(1,744

)

Reclassifications

 

 

 

 

 

856

 

 

 

 

 

 

(856

)

 

 

 

 

 

 

Exchange differences

 

 

9

 

 

 

47

 

 

 

162

 

 

 

15

 

 

 

399

 

 

 

632

 

At December 31, 2021

 

 

16,081

 

 

 

16,923

 

 

 

25,877

 

 

 

4,073

 

 

 

11,306

 

 

 

74,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2020

 

 

4,401

 

 

 

8,124

 

 

 

10,987

 

 

 

 

 

 

5,838

 

 

 

29,350

 

Amortization

 

 

2,569

 

 

 

1,622

 

 

 

1,837

 

 

 

 

 

 

757

 

 

 

6,785

 

Exchange differences

 

 

17

 

 

 

(42

)

 

 

(6

)

 

 

 

 

 

(122

)

 

 

(153

)

At December 31, 2020

 

 

6,987

 

 

 

9,704

 

 

 

12,818

 

 

 

 

 

 

6,473

 

 

 

35,982

 

Amortization

 

 

2,896

 

 

 

2,243

 

 

 

1,656

 

 

 

 

 

 

709

 

 

 

7,504

 

Disposal

 

 

(1,134

)

 

 

(139

)

 

 

 

 

 

 

 

 

(62

)

 

 

(1,335

)

Exchange differences

 

 

3

 

 

 

30

 

 

 

28

 

 

 

 

 

 

120

 

 

 

181

 

At December 31, 2021

 

 

8,752

 

 

 

11,838

 

 

 

14,502

 

 

 

 

 

 

7,240

 

 

 

42,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net book value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2021

 

 

7,329

 

 

 

5,085

 

 

 

11,375

 

 

 

4,073

 

 

 

4,066

 

 

 

31,928

 

At December 31, 2020

 

 

10,126

 

 

 

5,156

 

 

 

12,552

 

 

 

1,588

 

 

 

4,479

 

 

 

33,901

 

 

Development costs are referred to costs for the study, design and prototype development for products which have been or are expected to be commercialized and for which is probable that the expected future economic benefits will flow to the entity. Development expense is recognized in the consolidated income statement as Research and Development expenses.

Industrial patents and intellectual property rights increase in EUR 1,298 thousand due to the acquisition of licenses for IT Systems and the capitalization of costs associated with upgrading the enterprise resource planning system (ERP).

Concessions, licenses, trademarks and similar rights with a total carrying amount of EUR 11,375 thousand (EUR 12,552 thousand in 2020) mainly includes the tradenames related to Balda Group companies.

Intangible fixed assets in process and advances refer to ongoing projects which shall conclude in the subsequent years. Intangible fixed assets and advances increase in EUR 3,688 thousand mainly due to the integration of our business divisions into the cloud-based enterprise resource planning system. The Group performed an analysis on such cloud computing arrangements for identifying whether they provided a resource identifiable as intangible assets and established that the Group has the power to obtain the future economic benefits flowing from the underlying resources and to restrict the access of others to those benefits. In particular, the analysis was aimed at identifying whether (i) the Group has the contractual right to take

possession of the software during the hosting period without significant penalty and (ii) it is feasible for the Group to run the software on its own hardware or contract with another party unrelated to the supplier to host the software.

No impairment indicators have been identified for intangible assets and therefore no impairment losses have been accounted for. No changes in the useful life of intangible assets have occurred in all periods presented.