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Intangible assets | 12 Months Ended
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Dec. 31, 2021
Intangible assets [Abstract] |
Intangible assets | a) Intangible assets are composed as follows:
| December 31, 2021
| Cost |  | Accumulated amortization |  | Net
Expenditures related to software and technology (i) | 2,016,541 |  |  | (772,804) |  |  | 1,243,737 |
Software licenses | 196,854 |  |  | (53,129) |  |  | 143,725 |
Goodwill (ii) | 209,908 |  |  | — |  |  | 209,908 |
Other | 67,768 |  |  | (14,962) |  |  | 52,806 |
| 2,491,071 |  |  | (840,895) |  |  | 1,650,176 |
| December 31, 2020
| Cost |  | Accumulated amortization |  | Net
Expenditures related to software and technology (i) | 1,319,061 |  |  | (501,319) |  |  | 817,742 |
Software licenses | 103,256 |  |  | (29,060) |  |  | 74,196 |
Goodwill (ii) | 169,667 |  |  | — |  |  | 169,667 |
Other | 62,786 |  |  | (771) |  |  | 62,015 |
| 1,654,770 |  |  | (531,150) |  |  | 1,123,620 |
(i)The PagSeguro Group capitalizes expenses incurred with the development of platforms, which are amortized over their useful lives of approximately five years. (ii)The balances comprise the goodwill arising from the acquisition of the companies R2TECH, BIVA, BancoSeguro, Yamí, Zygo, Moip and Concil. The goodwill is allocated to the Cash Generating Units (CGUs) in each of the acquired companies that generated the goodwill and is demonstrated below:
| December 31, 2021 |  | December 31, 2020
Moip | 148,117 |  |  | 148,117 |
Concil | 20,731 |  |  | — |
Biva Serviços | 14,627 |  |  | — |
Bivaco Holding | — |  |  | 14,627 |
Banco Seguro | 12,612 |  |  | 12,612 |
Boa Compra | 6,570 |  |  | — |
Zygo | 5,768 |  |  | 5,768 |
R2Tech | — |  |  | 6,570 |
Yami | 1,382 |  |  | 1,382 |
Total | 209,806 |  |  | 189,075 |
The recoverable amount of a CGU is determined based on value-in-use calculations. The goodwill was mainly represented by the MOIP acquisition in the amount of R$148,117. The recoverability of this goodwill was tested using five-year budgets, a long-term growth rate based on estimated gross domestic product (3.34% in 2021, 2.51% in 2022, 2.44% in 2023 and 2.49% in 2024), inflation rates (3.01% in 2021, 3.39% in 2022, 3.33% in 2023 and 3.27% in 2024) metrics to project future cash flows and discount rate based on WACC (being stable to 13% per year). For the amount of goodwill represented by the acquisition of Concil, management has reviewed the assumptions applied in the preliminary purchase price allocation prepared at the date of the transaction and no significant variances were observed from that date to December 31, 2021. For the goodwill originated by other acquisitions, the Company tested the recoverability using budgets for the period of five years for each of these companies and a long-term growth rate based on the estimative of gross domestic product (1.60% in 2022, 2.28% in 2023, 2.41% in 2024 and 2.45% in 2022) and inflation rates (4.17% in 2022, 3.34% in 2023, 3.17% in 2024 and 3.14% in 2025) applying these metrics to project future cash flows and using discount rate based on WACC (fluctuating from 8% to 13% per year) calculated by each one of Companies with goodwill. Based on these assessments, management concluded that the book balances recorded on December 31, 2021 of the respective assets are recoverable, since the estimated value for UGC was higher than its book value and, therefore, no provision for impairment of intangible assets was accounted for. b) The changes in cost and accumulated amortization were as follows:
| Expenditures with software and technology |  | Software licenses |  | Goodwill |  | Other |  | Total |
On December 31, 2019 |  |  |  |  |  |  |  |  |  |
Cost | 787,970 |  |  | 58,247 |  |  | 54,858 |  |  | 4,586 |  |  | 905,661 |  |
Accumulated amortization | (302,031) |  |  | (13,492) |  |  | — |  |  | (585) |  |  | (316,108) |  |
Net book value | 485,939 |  |  | 44,755 |  |  | 54,858 |  |  | 4,001 |  |  | 589,553 |  |
On December 31, 2020 | 485,939 |  |  | 44,755 |  |  | 54,858 |  |  | 4,001 |  |  | 589,553 |  |
Opening balance |  |  |  |  |  |  |  |  |  |
Cost | 531,092 |  |  | 45,010 |  |  | 114,809 |  |  | 58,199 |  |  | 749,110 |  |
Additions (i) | 485,608 |  |  | 42,138 |  |  | 134,274 |  |  | 58,633 |  |  | 720,653 |  |
Disposals (ii) | (6,308) |  |  | — |  |  | (19,465) |  |  | (447) |  |  | (26,220) |  |
Acquisition of subsidiary (iii) | 51,791 |  |  | 2,871 |  |  | — |  |  | 13 |  |  | 54,675 |  |
Amortization | (199,289) |  |  | (15,569) |  |  | — |  |  | (185) |  |  | (215,043) |  |
Amortization | (164,319) |  |  | (15,153) |  |  | — |  |  | (180) |  |  | (179,652) |  |
Disposals | 2,667 |  |  | — |  |  | — |  |  | — |  |  | 2,667 |  |
Acquisition of subsidiary (iii) | (37,636) |  |  | (416) |  |  | — |  |  | (5) |  |  | (38,056) |  |
Net book value | 817,742 |  |  | 74,196 |  |  | 169,667 |  |  | 62,015 |  |  | 1,123,620 |  |
On December 31, 2020 |  |  |  |  |  |  |  |  |  |
Cost | 1,319,061 |  |  | 103,256 |  |  | 169,667 |  |  | 62,786 |  |  | 1,654,770 |  |
Accumulated amortization | (501,319) |  |  | (29,060) |  |  | — |  |  | (771) |  |  | (531,150) |  |
Net book value | 817,742 |  |  | 74,196 |  |  | 169,667 |  |  | 62,015 |  |  | 1,123,620 |  |
On December 31, 2021 |  |  |  |  |  |  |  |  |  |
Cost | 697,480 |  |  | 93,597 |  |  | 40,241 |  |  | 4,983 |  |  | 836,301 |  |
Additions (iv) | 715,382 |  |  | 97,103 |  |  | 40,589 |  |  | 4,983 |  |  | 858,057 |  |
Disposals | (18,167) |  |  | (3,645) |  |  | (348) |  |  | — |  |  | (22,160) |  |
Acquisition of subsidiary (iii) | 265 |  |  | 139 |  |  | — |  |  | — |  |  | 404 |  |
Amortization | (271,485) |  |  | (24,068) |  |  | — |  |  | (14,192) |  |  | (309,745) |  |
Amortization | (278,220) |  |  | (24,290) |  |  | — |  |  | (14,192) |  |  | (316,702) |  |
Disposals | 6,735 |  |  | 222 |  |  | — |  |  | — |  |  | 6,957 |  |
Net book value | 1,243,737 |  |  | 143,725 |  |  | 209,908 |  |  | 52,806 |  |  | 1,650,176 |  |
On December 31, 2021 |  |  |  |  |  |  |  |  |  |
Cost | 2,016,541 |  |  | 196,854 |  |  | 209,908 |  |  | 67,768 |  |  | 2,491,071 |  |
Accumulated amortization | (772,804) |  |  | (53,129) |  |  | — |  |  | (14,962) |  |  | (840,895) |  |
Net book value | 1,243,737 |  |  | 143,725 |  |  | 209,908 |  |  | 52,806 |  |  | 1,650,176 |  |
(i) | Refers to pulverized expenditures with software and technology, mainly related to customer experience, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions, mainly related to MOIP and other is related to purchase price allocation of MOIP (customer portfolio).
(ii) | Goodwill disposals refers to goodwill recorded in prior years related to business combinations acquisitions.
(iii) | Relates to intangible assets from Concil acquired in 2021 and MOIP, ZYGO and CDS, which were acquired in 2020.
(iv) | Refers to pulverized expenditures with software and technology, mainly related to customer experience functionalities, such as, digital payment and digital banking account. Goodwill recorded in business combinations acquisitions related to Concil.

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- Definition The entire disclosure for intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 38 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=38&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IAS38_g118-128_TI -URIDate 2021-03-24 + Details
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- Definition Intangible assets [Abstract] + References No definition available. + Details
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