14. Intangible assets
|
(in millions of euros) |
2025 |
2024 |
|
Composition 1 January |
||
|
Acquisition price |
839 |
912 |
|
Accumulated depreciation and impairment charges |
729 |
709 |
|
Carrying amount as at 1 January |
110 |
203 |
|
Movements |
||
|
Investments |
11 |
39 |
|
Capitalisations |
- |
- |
|
Held for sale |
- |
-1 |
|
Depreciation |
-36 |
-85 |
|
Reversal of impairment charges |
7 |
-3 |
|
Other movements |
-41 |
-43 |
|
Total movements for the financial year |
-59 |
-93 |
|
Composition 31 December |
||
|
Acquisition cost |
453 |
839 |
|
Accumulated depreciation and impairment charges |
402 |
729 |
|
Carrying amount as at 31 December |
51 |
110 |
In 2025, NS evaluated its portfolio of intangible assets (primarily software). Based on this evaluation, it was concluded that part of the expenditure capitalised in previous years relates to Software-as-a-Service (SaaS) solutions that do not meet the capitalisation criteria of IAS 38. In line with this assessment, a write-down of €30 million was recognised as at 1 January 2025, presented under ‘other movements’ in the statement of changes in intangible assets. Expenses related to such SaaS services will be recognised as an expense in the income statement from 2025 onwards at the time they are incurred, unless and to the extent that specific configuration or customisation costs separately qualify for capitalisation under IAS 38.
In 2024, NS reassessed the depreciation periods for IT projects. In order to better reflect the actual economic life of assets as a result of increasingly rapid IT developments, the depreciation period for a number of IT projects has been adjusted (from 7 to 5 and 3 years, respectively). This has resulted in an additional depreciation charge of €7 million in 2024. In addition, assets worth €18 million were taken out of service in 2024 and written down to zero. These are included under other changes.
For an explanation of the (reversal of) impairments, see note 15.
Accounting policy
Intangible assets
Intangible assets acquired or produced by the Group with a finite useful life are valued at cost less cumulative amortisation and cumulative impairment charges. These intangible assets mainly relate to software.
Expenditure after initial recognition for capitalised intangible assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including internally generated goodwill and trademarks, is recognised as an expense in the income statement when incurred.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful life of the intangible assets from the date they are available for use. The estimated useful life of the software is between 3 and 10 years.