1. Intangible Assets Internally Developed Software CO3 meeting 17-09-2015 FP-FAS-GPA

2. External Auditor Recommendation CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS2 External Auditors have recommended that CERN implement the internal processes necessary to identify and value internally developed software as part of our intangible assets. The auditors consider that the scale of internally developed software at CERN is considerable, so without including them the value of intangible assets presented in the Financial Position is significantly understated.

3. PROJECT PROGRESS TO NOW CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS3 2014 - Meetings with technical side and requests for data (160 software identified) to support drafting the policy Theoretical issues identified, External Auditors and E&Y consulted for solutions. Policy drafted and provided to CERN’s External Auditors 2015 – Meetings with technical side and requests for data sent out with a Guideline to assist in completing the Excel table

4. PROJECT OUTSTANDING (for GPA) CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS4 Receive data by 30 Sept Record in a central register (Infor EAM) Value man-months of development by year Calculate depreciation based on useful lives provided by technical contacts Development of EDH tracking and validation document for use 2016 Phase 2 of project re direct attributable costs on acquired software is in progress (guideline issued, meetings held with IT & AIS, data collection)

5. ACCOUNTING POLICY CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS5 For existing software developed since 1/1/2012: estimated costs based on estimated time and average people costs For new software: costs of CERN manpower based on estimated time spent where projects meet recognition criteria General threshold: 100kCHF by project/software per year after it is in production Depreciation is straightline over the useful life

6. DATA COLLECTION CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS6 Deadline is 30 September Data is collected in an Excel table until end 2015 A practical guideline on implementing the Intangible Assets Policy on internally developed software was issued

7. ISSUES CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS7 Definition of software Level of detail to use Before the software is in production: development phase vs research phase After the software is in production: improvements vs maintenance Useful life: cannot accept indefinite Integrated Circuits: data will be collected but included in the accounts under Tangible assets. Challenge to avoid double counting with cost to completion of projects

8. THANK YOU FOR YOUR ATTENTION & COOPERATION CO3 Meeting 20150917 INTANGIBLES PROJECT / FP-FAS8 Please do not hesitate to contact us if you have further questions or suggestions Jan ROBINSON 62207jan.kirsty.robinson@cern.chjan.kirsty.robinson@cern.ch Julie FALCON 63270julie.falcon@cern.ch