Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 315

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 315
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 million relating to impairment charges and reversals for the yearended December 31, 2024. As described in Notes B.6.1., D.4. and D.5. to the consolidated financial statements, other intangibleassets not yet available for use are tested for impairment annually and whenever events or circumstances indicate that impairmentmight exist. Other intangible assets that generate separate cash flows and assets included in cash-generating units (CGUs) areassessed for impairment when events or changes in circumstances indicate that the asset or CGU may be impaired. Managementestimates the recoverable amount of the asset and recognizes an impairment loss if the carrying amount of the asset exceeds itsrecoverable amount. The recoverable amount of the asset is the higher of its fair value less costs to sell or its value in use. Value inuse is determined by management using estimated future cash flows generated by the asset or CGU which are discounted andprepared using the same methods as those used in the initial measurement of the assets and on the basis of medium-termstrategic plans. Management cash flow projections include significant assumptions related to mid and long-term sales forecasts;perpetual growth or attrition rate, where applicable; discount rate; and probability of success of current research anddevelopment projects.The principal considerations for our determination that auditing the recoverable amount of other intangible assets is especiallychallenging, subjective, and required complex auditor judgment related to the significant judgments made by management whendeveloping the significant assumptions utilized in the future cash flow projections as described above. |
| How We Addressedthe Matter in OurAudit | Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overallopinion on the consolidated financial statements. These audit procedures included obtaining an understanding of the process andassessing the design and testing the operating effectiveness of controls relating to management’s other intangible assetsimpairment assessment, including controls over the significant assumptions used in the impairment testing of the other intangibleassets. These audit procedures also included, among others, evaluating the appropriateness of the discounted cash flow model;testing the completeness, accuracy, and relevance of underlying data used in the model; and evaluating the significantassumptions used by management as described above. Evaluating management’s assumptions involved evaluating whether theassumptions used by management were reasonable by considering the current and past performance of other intangible assets incomparison to management’s previous forecasts and current trends, the consistency of certain assumptions with external marketand industry data, and whether these assumptions were