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.
Goodwill is analyzed per operating sector, as reflected in the new Group’s organizational structure, which is effective since the first quarter of fiscal year 2023 (see note 4.1):
Principles applicable to the accounting of business combinations are described in the note 3.
Goodwill is not amortized but is subject to impairment tests immediately if there are indicators of impairment, and at least once per year. Impairment test procedures are described in note 6.4 “Impairment of non-current assets”. Goodwill impairment charges recognized in the income statement are irreversible.
Changes in goodwill during the fiscal year were as follows:
| (in million euros) | September 1, 2023 | INCREASE(1) | DECREASE | IMPAIRMENT | RECLASSIFICATIONS (2) | CURRENCY TRANSLATION ADJUSTMENT AND OTHER | Other Movements (3) | AUGUST 31, 2024 |
|---|---|---|---|---|---|---|---|---|
| North America | North AmericaSeptember 1, 20232,406 | North AmericaINCREASE(1)51 | North AmericaDECREASE— | North AmericaIMPAIRMENT— | North AmericaRECLASSIFICATIONS (2)(6) | North AmericaCURRENCY TRANSLATION ADJUSTMENT AND OTHER(48) | North AmericaOther Movements (3)— | North AmericaAUGUST 31, 20242,403 |
| France | France September 1, 2023515 |
France INCREASE(1)— |
France DECREASE— |
France IMPAIRMENT— |
France RECLASSIFICATIONS (2)— |
France CURRENCY TRANSLATION ADJUSTMENT AND OTHER— |
France Other Movements (3)— |
France AUGUST 31, 2024515 |
| United Kingdom & Ireland | United Kingdom & IrelandSeptember 1, 2023 670 |
United Kingdom & IrelandINCREASE(1)— | United Kingdom & IrelandDECREASE— | United Kingdom & IrelandIMPAIRMENT— | United Kingdom & IrelandRECLASSIFICATIONS (2)— | United Kingdom & IrelandCURRENCY TRANSLATION ADJUSTMENT AND OTHER 13 |
United Kingdom & IrelandOther Movements (3)— | United Kingdom & IrelandAUGUST 31, 2024 683 |
| Continental Europe | Continental Europe September 1, 2023754 |
Continental Europe INCREASE(1)5 |
Continental Europe DECREASE— |
Continental Europe IMPAIRMENT— |
Continental Europe RECLASSIFICATIONS (2)— |
Continental Europe CURRENCY TRANSLATION ADJUSTMENT AND OTHER3 |
Continental Europe Other Movements (3)19 |
Continental Europe AUGUST 31, 2024781 |
| Europe | EuropeSeptember 1, 20231,939 | EuropeINCREASE(1)5 | EuropeDECREASE— | EuropeIMPAIRMENT— | EuropeRECLASSIFICATIONS (2)— | EuropeCURRENCY TRANSLATION ADJUSTMENT AND OTHER16 | EuropeOther Movements (3)19 | EuropeAUGUST 31, 20241,979 |
| Asia-Pacific, Middle East & Africa | Asia-Pacific, Middle East & Africa September 1, 2023629 |
Asia-Pacific, Middle East & Africa INCREASE(1)20 |
Asia-Pacific, Middle East & Africa DECREASE— |
Asia-Pacific, Middle East & Africa IMPAIRMENT— |
Asia-Pacific, Middle East & Africa RECLASSIFICATIONS (2)— |
Asia-Pacific, Middle East & Africa CURRENCY TRANSLATION ADJUSTMENT AND OTHER— |
Asia-Pacific, Middle East & Africa Other Movements (3)— |
Asia-Pacific, Middle East & Africa AUGUST 31, 2024649 |
| Latin America | Latin America September 1, 2023374 |
Latin America INCREASE(1)— |
Latin America DECREASE— |
Latin America IMPAIRMENT— |
Latin America RECLASSIFICATIONS (2)— |
Latin America CURRENCY TRANSLATION ADJUSTMENT AND OTHER(29) |
Latin America Other Movements (3)— |
Latin America AUGUST 31, 2024345 |
| Brazil | Brazil September 1, 2023220 |
Brazil INCREASE(1)— |
Brazil DECREASE— |
Brazil IMPAIRMENT— |
Brazil RECLASSIFICATIONS (2)— |
Brazil CURRENCY TRANSLATION ADJUSTMENT AND OTHER(32) |
Brazil Other Movements (3)— |
Brazil AUGUST 31, 2024188 |
| Rest of the World | Rest of the WorldSeptember 1, 20231,223 | Rest of the WorldINCREASE(1)20 | Rest of the WorldDECREASE— | Rest of the WorldIMPAIRMENT— | Rest of the WorldRECLASSIFICATIONS (2)— | Rest of the WorldCURRENCY TRANSLATION ADJUSTMENT AND OTHER(61) | Rest of the WorldOther Movements (3)— | Rest of the WorldAUGUST 31, 20241,182 |
| TOTAL | TOTALSeptember 1, 20235,568 | TOTALINCREASE(1)76 | TOTALDECREASE— | TOTALIMPAIRMENT— | TOTALRECLASSIFICATIONS (2)(6) | TOTALCURRENCY TRANSLATION ADJUSTMENT AND OTHER(93) | TOTALOther Movements (3)19 | TOTALAUGUST 31, 20245,564 |
(1) The acquisitions made during the fiscal year are detailed in the note 3.1.
(2) The reclassifications made during the financial year mainly correspond to the goodwill allocated to Denali Universal Services LLC (in the United States), which was classified as an asset held for sale.
(3) The Other movements correspond to the effect of hyperinflation on goodwill in Türkiye.
