Vetoquinol Universal Registration Document 2019

Vetoquinol  Universal Registration Document 2019  Financial report   81 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6 6.5.18.2 Diluted earnings per share Diluted earnings per share is calculated by adjusting net income attributable to holders of common shares divided by the weighted average number of shares outstanding over the year for the impact of all common shares having a potentially dilutive effect. At December 31, 2019, just as at December 31, 2018, potentially dilutive instruments include bonus shares granted. 2019 2018 Net income attributable to holders of common shares (€000) 28,589 36,259 Expenses on grants of bonus shares - 75 Earnings used to calculate diluted earnings (€000) 28,589 36,334 Weighted average number of shares outstanding over the year 11,881,902 11,881,902 Treasury shares at end of period (direct holding) (47,994) (37,994) Treasury shares at end of period (liquidity contract) (2,084) (3,107) Adjusted weighted average number of shares outstanding over the period 11,831,824 11,840,801 Dilutive effect of bonus share grants - - Number of shares including dilutive effect 11,831,824 11,840,801 Diluted earnings per share (€) 2.42 3.07 6.5.19 Goodwill 6.5.19.1 Goodwill Goodwill is valued at cost less accumulated impairment losses. See Note 6.5.3.3. for the initial valuation of good- will. Under IAS 36, goodwill is allocated to cash-generating units for purposes of impairment testing as described below. Goodwill is subject to impairment testing at least once a year – and more frequently if there are any indi- cators of impairment – and is carried at cost less any accumulated impairment losses. Impairment losses are irreversible. €000 2019 2018 At January 1 Gross value 80,701 75,874 Opening book value 80,701 75,874 Acquisitions related to business combinations 52,603 6,432 Impairment losses recognized in the income statement - - Reclassifications/allocation of goodwill (2,833) (1,558) Exchange differences, net (1,030) (47) At December 31 Gross value 129,440 80,701 Closing book value 129,440 80,701 6.5.19.2 Impairment tests - measurement of PP&E and intangible assets In accordance with IAS 36, all cash-generating units (CGUs) containing goodwill were tested for impairment. The CGUs defined for Vetoquinol Group are the fol- lowing companies: Vetoquinol USA, Vetoquinol Canada, Vetoquinol France, Vetoquinol UK, Vetoquinol Belgium, Vetoquinol Switzerland, Vetoquinol Czech Republic, Veto- quinol Austria, Vetoquinol Poland, Vetoquinol Ireland, Vetoquinol Germany, Vetoquinol Italy, Vetoquinol Scan- dinavia, Vetoquinol India, Vetoquinol Asia and Vetoquinol Australia. Farmvet Systems, a new Group CGU, was not tested for impairment in 2019 but the 12-month purchase price allocation process was completed during the year.