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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 consolidated 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 24.
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 20.
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 appointi Directors for determining joint or global control.
When a property portfolio meets the definition of a business com-
bination 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 busi-
ness combination is determined based on the value given by the
real estate experts.
More details are given in Note 43.