Registration Document 2013
Consolidated Financial Statements And Notes
B.4. Loss of significant influence while retaining
a residual interest
The loss of significant interest while retaining a residual interest
may be analyzed as the disposal of shares accounted for by the
equity method followed by the acquisition of a financial asset.This
process involves, as of the date of disposal:
the recognition of a gain or loss on disposal, comprising:
a gain or loss resulting from the percentage ownership interest
a gain or loss resulting from the remeasurement at fair value
of the retained percentage ownership interest;
the reclassification in profit of all of the other comprehensive
C.1. Positive goodwill
Goodwill, representing the excess of the cost of a business
combination over the Group’s interest in the net fair value of the
identifiable assets and liabilities acquired at the acquisition date,
is recognized in assets under “Goodwill”. Residual goodwill mainly
results from the expected synergies and other benefits arising from
the business combination.
In accordance with IFRS 3 (revised), which is applicable to business
combinations carried out on or after January 1, 2010, each time
it acquires less than 100% interest in an entity, the Group must
choose whether to recognize goodwill:
by the full goodwill method (
on a 100% basis): in this case,
non-controlling interests are measured at fair value and goodwill
attributable to non-controlling interests is recognized in addition
to the goodwill recognized on the acquired interest;
by the partial goodwill method (
based on the percentage
interest acquired, with no change possible later in the event
of an additional interest being acquired that does not transfer
control): in this case, non-controlling interests are measured as
the non-controlling interest’s proportionate share of the acquiree’s
identifiable net assets and goodwill is only recognized for the
Goodwill arising on the acquisition of associates – corresponding to
companies over which the Group exercises significant influence – is
included in the carrying amount of the associate concerned.
Goodwill arising on the acquisition of subsidiaries and jointly
controlled entities is reported separately.
In accordance with IFRS 3 (revised) “Business Combinations”,
goodwill is not amortized but is tested for impairment at least once
a year and more frequently if there is any indication that it may
be impaired. The methods used to test goodwill for impairment
are described in Note 1.E.6. If the carrying amount of goodwill
exceeds its recoverable amount, an irreversible impairment loss
is recognized in profit.
C.2. Negative goodwill
Negative goodwill, representing the excess of the Group’s interest
in the net fair value of the identifiable assets and liabilities acquired
at the acquisition date over the cost of the business combination,
is recognized immediately in profit.
D. Foreign currency translation
The presentation currency is the euro.
The statements of financial position of foreign subsidiaries are
translated into euros at the closing exchange rate, and their income
statements are translated at the average rate for the period. Differences
arising from translation are recorded as a separate component of
equity and recognized in profit on disposal of the business.
Accor did not have any subsidiaries operating in hyperinflationary
economies in any of the periods presented.
E. Non-current assets
E.1. Intangible assets
In accordance with IAS 38 “Intangible Assets”, intangible assets
are measured at cost less accumulated amortization and any
accumulated impairment losses.
Brands and lease premiums in France (
droit au bail
) are considered
as having indefinite useful lives because the Group considers that
there is no foreseeable limit to the period in which they can be used
and are therefore not amortized.Their carrying amount is reviewed at
least once a year and more frequently if there is any indication that
they may be impaired. If their fair value is less than their carrying
amount, an impairment loss is recognized (see Note 1.E.6).
Other intangible assets (licenses and software) are considered as
having finite useful lives.They are amortized on a straight-line basis
over their useful lives.
The clientele of hotels outside France is generally amortized over
the life of the underlying lease.
Identifiable intangible assets recognized in a business combination are
initially recognized at amounts determined by independent valuations,
performed using relevant criteria for the business concerned that
can be applied for the subsequent measurement of the assets.
Identifiable brands are measured based on multiple criteria, taking
into account both brand equity and their contribution to profit.