Any residual difference between the fair value of the consideration transferred (for example the amount paid), increased by the amount of the non-controlling interest in the acquired company (measured either at fair value or its share in the fair value of the identifiable net assets acquired) and the fair value as of the date of acquisition of the assets acquired and liabilities assumed, is recognized as goodwill in the statement of financial position.
The Group measures non-controlling interests on a case-by-case basis for each business combination either at fair value or based on their percentage interest in the fair value of identifiable net assets acquired.
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 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 million euros) | AUGUST 31, 2021 | INCREASES DURING THE PERIOD | DECREASES DURING THE PERIOD | IMPAIRMENT | RECLASSIFICATION | CURRENCY TRANSLATION ADJUSTMENT | AUGUST 31, 2022 |
|---|---|---|---|---|---|---|---|
| Corporate Services | Corporate Services AUGUST 31, 2021 976 |
Corporate Services INCREASES DURING THE PERIOD 5 |
Corporate Services DECREASES DURING THE PERIOD
|
Corporate Services IMPAIRMENT
|
Corporate Services RECLASSIFICATION 22 |
Corporate Services CURRENCY TRANSLATION ADJUSTMENT 92 |
Corporate Services AUGUST 31, 2022 1,095 |
| Government & Agencies | Government & Agencies AUGUST 31, 2021 331 |
Government & Agencies INCREASES DURING THE PERIOD — |
Government & Agencies DECREASES DURING THE PERIOD — |
Government & Agencies IMPAIRMENT
|
Government & Agencies RECLASSIFICATION — |
Government & Agencies CURRENCY TRANSLATION ADJUSTMENT 14 |
Government & Agencies AUGUST 31, 2022 345 |
| Sports & Leisure | Sports & Leisure AUGUST 31, 2021 373 |
Sports & Leisure INCREASES DURING THE PERIOD — |
Sports & Leisure DECREASES DURING THE PERIOD — |
Sports & Leisure IMPAIRMENT — |
Sports & Leisure RECLASSIFICATION — |
Sports & Leisure CURRENCY TRANSLATION ADJUSTMENT 52 |
Sports & Leisure AUGUST 31, 2022 425 |
| Energy & Resources | Energy & Resources AUGUST 31, 2021 293 |
Energy & Resources INCREASES DURING THE PERIOD — |
Energy & Resources DECREASES DURING THE PERIOD — |
Energy & Resources IMPAIRMENT — |
Energy & Resources RECLASSIFICATION 15 |
Energy & Resources CURRENCY TRANSLATION ADJUSTMENT 32 |
Energy & Resources AUGUST 31, 2022 340 |
| Other non-segmented activities | Other non-segmented activities AUGUST 31, 2021 529 |
Other non-segmented activities INCREASES DURING THE PERIOD 96 |
Other non-segmented activities DECREASES DURING THE PERIOD (5) |
Other non-segmented activities IMPAIRMENT
|
Other non-segmented activities RECLASSIFICATION (37) |
Other non-segmented activities CURRENCY TRANSLATION ADJUSTMENT 33 |
Other non-segmented activities AUGUST 31, 2022 616 |
| Business & Administrations | Business & Administrations AUGUST 31, 2021 2,503 |
Business & Administrations INCREASES DURING THE PERIOD 101 |
Business & Administrations DECREASES DURING THE PERIOD (5) |
Business & Administrations IMPAIRMENT — |
Business & Administrations RECLASSIFICATION — |
Business & Administrations CURRENCY TRANSLATION ADJUSTMENT 223 |
Business & Administrations AUGUST 31, 2022 2,822 |
| Healthcare | Healthcare AUGUST 31, 2021 937 |
Healthcare INCREASES DURING THE PERIOD 5 |
Healthcare DECREASES DURING THE PERIOD — |
Healthcare IMPAIRMENT — |
Healthcare RECLASSIFICATION
|
Healthcare CURRENCY TRANSLATION ADJUSTMENT 126 |
Healthcare AUGUST 31, 2022 1,068 |
| Seniors | Seniors AUGUST 31, 2021 645 |
Seniors INCREASES DURING THE PERIOD 1 |
Seniors DECREASES DURING THE PERIOD
|
Seniors IMPAIRMENT
|
Seniors RECLASSIFICATION (1) |
Seniors CURRENCY TRANSLATION ADJUSTMENT 77 |
Seniors AUGUST 31, 2022 722 |
| Healthcare & Seniors | Healthcare & Seniors AUGUST 31, 2021 1,582 |
Healthcare & Seniors INCREASES DURING THE PERIOD 6 |
Healthcare & Seniors DECREASES DURING THE PERIOD — |
Healthcare & Seniors IMPAIRMENT — |
Healthcare & Seniors RECLASSIFICATION (1) |
Healthcare & Seniors CURRENCY TRANSLATION ADJUSTMENT 203 |
Healthcare & Seniors AUGUST 31, 2022 1,790 |
| Schools | Schools AUGUST 31, 2021 380 |
Schools INCREASES DURING THE PERIOD 2 |
Schools DECREASES DURING THE PERIOD — |
Schools IMPAIRMENT
|
Schools RECLASSIFICATION 41 |
Schools CURRENCY TRANSLATION ADJUSTMENT 41 |
Schools AUGUST 31, 2022 464 |
| Universities | Universities AUGUST 31, 2021 764 |
Universities INCREASES DURING THE PERIOD — |
Universities DECREASES DURING THE PERIOD — |
Universities IMPAIRMENT — |
Universities RECLASSIFICATION (20) |
Universities CURRENCY TRANSLATION ADJUSTMENT 127 |
Universities AUGUST 31, 2022 871 |
| Education | Education AUGUST 31, 2021 1,145 |
Education INCREASES DURING THE PERIOD 2 |
Education DECREASES DURING THE PERIOD — |
Education IMPAIRMENT — |
Education RECLASSIFICATION 21 |
Education CURRENCY TRANSLATION ADJUSTMENT 168 |
Education AUGUST 31, 2022 1,336 |
| On-site Services | On-site Services AUGUST 31, 2021 5,230 |
On-site Services INCREASES DURING THE PERIOD 109 |
On-site Services DECREASES DURING THE PERIOD (5) |
On-site Services IMPAIRMENT — |
On-site Services RECLASSIFICATION 20 |
On-site Services CURRENCY TRANSLATION ADJUSTMENT 594 |
On-site Services AUGUST 31, 2022 5,948 |
| Benefits & Rewards Services | Benefits & Rewards Services AUGUST 31, 2021 581 |
Benefits & Rewards Services INCREASES DURING THE PERIOD 40 |
Benefits & Rewards Services DECREASES DURING THE PERIOD (3) |
Benefits & Rewards Services IMPAIRMENT — |
Benefits & Rewards Services RECLASSIFICATION — |
Benefits & Rewards Services CURRENCY TRANSLATION ADJUSTMENT 45 |
Benefits & Rewards Services AUGUST 31, 2022 663 |
| TOTAL | TOTAL AUGUST 31, 2021 5,811 |
TOTAL INCREASES DURING THE PERIOD 149 |
TOTAL DECREASES DURING THE PERIOD (8) |
TOTAL IMPAIRMENT — |
TOTAL RECLASSIFICATION — |
TOTAL CURRENCY TRANSLATION ADJUSTMENT 639 |
TOTAL AUGUST 31, 2022 6,611 |
Re classifications during Fiscal 2022 relate to the adjustment of the goodwill affected to Childcare activities following their effective disposal, reallocated to the Schools segment, and to the reallocation of contracts since the beginning of Fiscal 2022 (from Universities segment and Other non-segmented activities to Schools, Corporate Services and Energy & Resources segments).
