Company: SNY
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0001121404-25-000010
Chunk: 340

Company: Sanofi
Filing Date: 2025-02-13
Form: 20-F
Chunk 340
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 intended use, or (in the case of assets acquired in a business combination) at fair value as of the date of

the business combination. The component-based approach to accounting for property, plant and equipment is applied. Under

this approach, each component of an item of property, plant and equipment with a cost which is significant in relation to the total

cost of the item and which has a different useful life from the other components must be depreciated separately.

After initial measurement, property, plant and equipment is carried at cost less accumulated depreciation and impairment, except

for land which is carried at cost less impairment.

Subsequent costs are not recognized as assets unless (i) it is probable that future economic benefits associated with those costs

will flow to Sanofi and (ii) the costs can be measured reliably.

Borrowing costs attributable to the financing of items of property, plant and equipment, and incurred during the construction

period, are capitalized as part of the acquisition cost of the item.

Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which

they relate.

The depreciable amount of items of property, plant and equipment, net of any residual value, is depreciated on a straight line

basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life.

The customary useful lives of property, plant and equipment are as follows:

| Buildings               | 15to40years |
| Fixtures                | 10to20years |
| Machinery and equipment | 5to15years  |
| Other                   | 3to15years  |

Useful lives and residual values of property, plant and equipment are reviewed annually. The effect of any adjustment to useful

lives or residual values is recognized prospectively as a change in accounting estimate.

Depreciation of property, plant and equipment is recognized as an expense in the income statement, in the relevant classification

of expense by function.

B.5.2. Property, plant and equipment leased

Leases contracted by Sanofi have been accounted for in accordance with IFRS 16 (Leases). Sanofi recognizes a right-of-use asset

and a lease liability for all of its lease contracts, except for (i) leases relating to low-value assets and (ii) short-term leases

(12 months or less). Payments made in respect of leases not recognized on the balance sheet are recognized as an operating

expense on a straight line basis over the lease term.