When the fair value of the assets acquired and the liabilities assumed as of the acquisition date is greater than acquisition cost, increased by the amount of any non-controlling interest, the excess – representing negative goodwill – is immediately recognized in the income statement in the period of acquisition, after reviewing the procedures for the identification and measurement of the different components included in the calculation.
Changes in non-controlling interests, in the absence of either assumption or loss of control, are recognized in shareholders’ equity. In particular, when additional shares in an entity already controlled by the Group are acquired, the difference between the acquisition cost of the shares and the share of net assets acquired is recognized in equity attributable to equity holders of the parent. The consolidated value of the assets and liabilities of the subsidiary (including goodwill) remains unchanged.
Purchase price adjustments and/or earn-outs related to business combinations are recognized at their fair value as of the date of acquisition even if they are considered to be not probable. After the date of acquisition, changes in estimates of the fair value of price adjustments lead to an adjustment to goodwill only if they occur within the time allowed (a maximum of one year as of the date of acquisition) and if they result from facts and circumstances that existed at the acquisition date. In all other cases, the change is recognized in profit or loss except when the consideration transferred consists of an equity instrument.
Changes in goodwill during the fiscal year were as follows:
| (in millions of euro) | AUGUST 31, 2020 | INCREASES DURING THE PERIOD | DECREASES DURING THE PERIOD | IMPAIRMENT | RECLASSIFICATION | CURRENCY TRANSLATION ADJUSTMENT | AUGUST 31, 2021 |
|---|---|---|---|---|---|---|---|
| Corporate Services | Corporate Services AUGUST 31, 2020938 |
Corporate Services INCREASES DURING THE PERIOD23 |
Corporate Services DECREASES DURING THE PERIOD(1) |
Corporate Services IMPAIRMENT— |
Corporate Services RECLASSIFICATION— |
Corporate Services CURRENCY TRANSLATION ADJUSTMENT15 |
Corporate Services AUGUST 31, 2021976 |
| Government & Agencies | Government & Agencies AUGUST 31, 2020322 |
Government & Agencies INCREASES DURING THE PERIOD— |
Government & Agencies DECREASES DURING THE PERIOD— |
Government & Agencies IMPAIRMENT— |
Government & Agencies RECLASSIFICATION— |
Government & Agencies CURRENCY TRANSLATION ADJUSTMENT9 |
Government & Agencies AUGUST 31, 2021331 |
| Sports & Leisure | Sports & Leisure AUGUST 31, 2020369 |
Sports & Leisure INCREASES DURING THE PERIOD— |
Sports & Leisure DECREASES DURING THE PERIOD— |
Sports & Leisure IMPAIRMENT— |
Sports & Leisure RECLASSIFICATION— |
Sports & Leisure CURRENCY TRANSLATION ADJUSTMENT4 |
Sports & Leisure AUGUST 31, 2021373 |
| Energy & Resources | Energy & Resources AUGUST 31, 2020289 |
Energy & Resources INCREASES DURING THE PERIOD— |
Energy & Resources DECREASES DURING THE PERIOD— |
Energy & Resources IMPAIRMENT— |
Energy & Resources RECLASSIFICATION— |
Energy & Resources CURRENCY TRANSLATION ADJUSTMENT4 |
Energy & Resources AUGUST 31, 2021293 |
| Other non-segmented activities | Other non-segmented activities AUGUST 31, 2020523 |
Other non-segmented activities INCREASES DURING THE PERIOD— |
Other non-segmented activities DECREASES DURING THE PERIOD— |
Other non-segmented activities IMPAIRMENT— |
Other non-segmented activities RECLASSIFICATION— |
Other non-segmented activities CURRENCY TRANSLATION ADJUSTMENT7 |
Other non-segmented activities AUGUST 31, 2021529 |
| Business & Administrations | Business & AdministrationsAUGUST 31, 20202,441 | Business & AdministrationsINCREASES DURING THE PERIOD23 | Business & AdministrationsDECREASES DURING THE PERIOD(1) | Business & AdministrationsIMPAIRMENT— | Business & AdministrationsRECLASSIFICATION— | Business & AdministrationsCURRENCY TRANSLATION ADJUSTMENT40 | Business & AdministrationsAUGUST 31, 2021 2,503 |
| Healthcare | Healthcare AUGUST 31, 2020920 |
Healthcare INCREASES DURING THE PERIOD6 |
Healthcare DECREASES DURING THE PERIOD— |
Healthcare IMPAIRMENT— |
Healthcare RECLASSIFICATION— |
Healthcare CURRENCY TRANSLATION ADJUSTMENT12 |
Healthcare AUGUST 31, 2021937 |
| Seniors | Seniors AUGUST 31, 2020616 |
Seniors INCREASES DURING THE PERIOD21 |
Seniors DECREASES DURING THE PERIOD— |
Seniors IMPAIRMENT— |
Seniors RECLASSIFICATION(1) |
Seniors CURRENCY TRANSLATION ADJUSTMENT10 |
Seniors AUGUST 31, 2021645 |
| Healthcare & Seniors | Healthcare & SeniorsAUGUST 31, 20201,536 | Healthcare & SeniorsINCREASES DURING THE PERIOD26 | Healthcare & SeniorsDECREASES DURING THE PERIOD— | Healthcare & SeniorsIMPAIRMENT— | Healthcare & SeniorsRECLASSIFICATION(1) | Healthcare & SeniorsCURRENCY TRANSLATION ADJUSTMENT22 | Healthcare & SeniorsAUGUST 31, 2021 1,582 |
| Schools | Schools AUGUST 31, 2020484 |
Schools INCREASES DURING THE PERIOD— |
Schools DECREASES DURING THE PERIOD(3) |
Schools IMPAIRMENT— |
Schools RECLASSIFICATION(105) |
Schools CURRENCY TRANSLATION ADJUSTMENT4 |
Schools AUGUST 31, 2021380 |
| Universities | Universities AUGUST 31, 2020756 |
Universities INCREASES DURING THE PERIOD— |
Universities DECREASES DURING THE PERIOD— |
Universities IMPAIRMENT— |
Universities RECLASSIFICATION— |
Universities CURRENCY TRANSLATION ADJUSTMENT8 |
Universities AUGUST 31, 2021764 |
| Education | EducationAUGUST 31, 20201,240 | EducationINCREASES DURING THE PERIOD— | EducationDECREASES DURING THE PERIOD(3) | EducationIMPAIRMENT— | EducationRECLASSIFICATION(105) | EducationCURRENCY TRANSLATION ADJUSTMENT12 | EducationAUGUST 31, 2021 1,145 |
| On-site Services | On-site ServicesAUGUST 31, 20205,217 | On-site ServicesINCREASES DURING THE PERIOD50 | On-site ServicesDECREASES DURING THE PERIOD(4) | On-site ServicesIMPAIRMENT— | On-site ServicesRECLASSIFICATION(107) | On-site ServicesCURRENCY TRANSLATION ADJUSTMENT74 | On-site ServicesAUGUST 31, 2021 5,230 |
| Benefits & Rewards Services | Benefits & Rewards ServicesAUGUST 31, 2020547 | Benefits & Rewards ServicesINCREASES DURING THE PERIOD45 | Benefits & Rewards ServicesDECREASES DURING THE PERIOD(16) | Benefits & Rewards ServicesIMPAIRMENT(8) | Benefits & Rewards ServicesRECLASSIFICATION— | Benefits & Rewards ServicesCURRENCY TRANSLATION ADJUSTMENT13 | Benefits & Rewards ServicesAUGUST 31, 2021 581 |
| TOTAL | TOTALAUGUST 31, 20205,764 | TOTALINCREASES DURING THE PERIOD94 | TOTALDECREASES DURING THE PERIOD(20) | TOTALIMPAIRMENT(8) | TOTALRECLASSIFICATION(107) | TOTALCURRENCY TRANSLATION ADJUSTMENT87 | TOTALAUGUST 31, 2021 5,811 |
The reclassification movements of the period result of the classification as asset held for sale of the goodwill affected to Childcare activities (see note 3.2 "Disposed or held for sale activities").
