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146
/
Annual Accounts /
Notes to the Consolidated Accounts
V. Stock options
Equity-settled share-based payments to employees and third parties
providing similar services are measured at the fair value of the equity
instruments at the date of granting. Details regarding the determination
of the fair value of equity-settled share-based transactions are set out
in Note 43.
W. Estimates, judgments and main sources of concern
I Fair value of the property portfolio
Cofinimmo’s portfolio is valued quarterly by real estate experts. This valu-
ation by real estate experts is intended to determine the market value of
a property at a certain date, taking into account the market evolution and
the characteristics of the property. In parallel to the work of the real estate
experts, Cofinimmo proceeds with its own valuation of its assets with a
view on their long-term operation by its teams. The portfolio is recorded
at the fair value established by the real estate experts in the Group’s con-
solidated accounts.
II Financial instruments
The fair value of the Group’s financial instruments is calculated on the
basis of the market values in the Bloomberg software
1
. These fair values
are compared with the quarterly estimations received from the banks and
major variations are analysed.
More details are given in Note 23.
III Goodwill
Goodwills are calculated at the acquisition date as the positive difference
between the acquisition cost and Cofinimmo’s share in the net asset
acquired. These goodwills are then the subject of an impairment test by
comparing the net book value of the groups of buildings with their value in
use. The calculation of the value in use is based on assumptions of future
cash flows, indexation rates, cash flow years and residual values.
More details are given in Note 19.
IV Transactions
When acquiring a portfolio through the purchase of company shares, the
Group takes into account the percentage of shares held and the authority
to appointing Directors for determining joint or overall control.
When a property portfolio meets the definition of a business combina-
tion as defined under IFRS 3, the Group restates the assets and liabilities
acquired in the context of the business combination at their fair value. The
fair value of the property assets of the business combination is deter-
mined based on the value given by the real estate experts.
More details are given in Note 42.
1
The data provided by Bloomberg result from price observations relating to actual transactions and the application to these observations of valuation models developed in the scientific
literature
(www.bloomberg.com).