Registration Document 2013
Consolidated Financial Statements And Notes
Reversal of an impairment loss
In accordance with IAS 36 “Impairment of Assets”, impairment
losses on goodwill as well as on intangible assets with a finite
useful life, such as patents and software, are irreversible. Losses
on property, plant and equipment and on intangible assets with an
indefinite useful life, such as brands, are reversible in the case of a
change in estimates used to determine their recoverable amount.
E.7. Assets or disposal groups held for sale
Assets are classified as “held for sale” when they are available for
immediate sale in their present condition, their sale is highly probable,
management is committed to a plan to sell the asset and an active
program to locate a buyer and complete the plan has been initiated.
In accordance with IFRS 5 “Non-Current Assets Held for Sale and
Discontinued Operations”, assets or group of assets held for sale
are presented separately on the face of the statement of financial
position, at the lower of their carrying amount and fair value less
costs to sell.
This item groups together:
non-current assets held for sale;
groups of assets held for sale;
the total current and non-current assets related to a business
or geographical segment (
to a discontinued operation) itself
held for sale.
Inventories are measured at the lower of cost and net realizable
value, in accordance with IAS 2 “Inventories”. Cost is determined
by the weighted average cost method.
G. Prepaid expense
Prepaid expense corresponds to expenses paid during the period
that relate to subsequent periods. They also include the effect of
recognizing rental expense on a straight-line basis over the life of
the lease. Prepaid expense is included in “Other receivables and
H. Employee benefits expense
Employee benefits expense includes all amounts paid or payable
to employees, including statutory and discretionary profit-sharing,
pension contributions, payroll taxes and the cost of share-based
A“Crédit d’Impôt pour la Compétitivité et l’Emploi” (CICE) tax credit
was introduced in the 3
2012 Rectified Finance Act with the aim
of making French businesses more competitive by reducing labor
costs for certain employees. The CICE consists in substance of a
government grant to be spent by companies on measures to improve
their competitiveness. It is therefore accounted for in accordance
with IAS 20 “Accounting for Government Grants and Disclosure”.
As allowed under IAS 20, the Group has chosen to record it as a
deduction from the related expenses,
as a deduction from payroll
costs.The CICE recorded in the 2013 financial statements in respect
of previously recognized payroll costs amounted to €10.5 million.
In accordance with IAS 37 “Provisions, Contingent Liabilities and
Contingent Assets”, a provision is recognized when the Group
has a present obligation (legal, contractual or implicit) as a result
of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation. Provisions are determined based on the best estimate
of the expenditure required to settle the obligation, in application
of certain assumptions. Provisions are discounted when the effect
of the time value of money is material, using a discount rate that
reflects current market assessments of the time value of money.
The most commonly applied rates are the prime long-term corporate
bond rate or the government bond rate.
Provisions for restructuring costs are recorded when the Group
has a detailed formal plan for the restructuring and the plan’s main
features have been announced to those affected by it as of the
close of accounts.
J. Pensions and other post-employment
The Group offers various supplementary pension, length-of-service
award and other post-employment benefit plans, in accordance
with the laws and practices of the countries where it operates.
These plans are either defined contribution or defined benefit plans.
Under defined contribution plans, the Group pays fixed contributions
into a separate fund and has no legal or constructive obligation to
pay further contributions if the fund does not hold sufficient assets
to pay benefits. Contributions under these plans are recognized
immediately as an expense.
For defined benefit plans, under which the Group has a legal or
constructive obligation to provide agreed benefits to current and
future employees in exchange for a given level of service (including
multi-employer plans when the manager is able to provide the
necessary information), the Group’s obligations are determined in
accordance with IAS 19 “Employee Benefits”.
The Group’s obligation is determined by the projected unit credit
method based on actuarial assumptions related to future salary levels,
retirement age, mortality, staff turnover and the discount rate.These
assumptions take into account the macro-economic environment
and other specific conditions in the various host countries.