Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 341

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 341
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On commencement of a lease, the liability for future lease payments is discounted at the incremental borrowing rate, which is a

risk-free rate adjusted to reflect the specific risk profile of each Sanofi entity. Because lease payments are spread over the lease

term, Sanofi applies a discount rate based on the duration of those payments.

The payments used to determine the liability for future lease payments exclude non-lease components, but include fixed

payments that Sanofi expects to make to the lessor over the estimated lease term.

After commencement of the lease, the liability for future lease payments is reduced by the amount of the lease payments made,

and increased to reflect interest on the liability. In the event of a reassessment or modification of future lease payments, the lease

liability is remeasured. The right-of-use asset – which is initially measured at cost including direct costs of the lessee,

prepayments made at or prior to the commencement date, less lease incentives received and restoration costs – is depreciated

on a straight line basis over the lease term, and tested for impairment as required.

Sanofi recognizes deferred taxes in respect of right-of-use assets and lease liabilities.

Leasehold improvements are depreciated over their economic life, which is capped at the lease term as determined

under IFRS 16.

| SANOFIFORM 20-F2024 | F-17 |

| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |

B.6. Impairment of property, plant and equipment, intangible assets, and investments accounted for using the equity method B.6.1. Impairment of property, plant and equipment and intangible assets In accordance with IAS 36 (Impairment of Assets), assets that generate separate cash flows and assets included in cash- generating units (CGUs) are assessed for impairment when events or changes in circumstances indicate that the asset or CGU may be impaired. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Under IAS 36, each CGU or group of CGUs to which goodwill is allocated must (i) represent the lowest level within the entity at which the goodwill is monitored for internal management purposes, and (ii) not be larger than an operating segment determined in accordance with IFRS 8 (Operating Segments), before application of the IFRS 8 aggregation criteria (see Note B.26.). Quantitative and qualitative indications of impairment