2013 Registration document and annual financial report - page 200

Registration Document 2013
198
Financial Statemements
5
Consolidated Financial Statements And Notes
ƒƒ
One plan is a performance option plan with vesting conditions
other than market conditions.
ƒƒ
Four other plans are a performance option plan with vesting
conditions based on performance in relation to the market.
As for the other plans, grantees must still be employed by the
Group at the starting date of the exercise period.
The service cost representing consideration for the stock options is
recognized in expense over the vesting period by adjusting equity.
The expense recognized in each period corresponds to the fair value
of equity instruments granted at the grant date, as determined
using the Black & Scholes option-pricing model. The grant date
is defined as the date when the plan’s terms and conditions are
communicated to Group employees corresponding to the dates on
which the Board of Directors approved these plans.
Under IFRS 2, vesting conditions, other than market conditions,
are not taken into account when estimating the fair value of the
options but are taken into account by adjusting the number of equity
instruments included in the measurement of the transaction amount,
so that, ultimately, the amount recognized for goods and services
received as consideration for the equity instruments granted is
based on the number of equity instruments that eventually vest.
Market conditions are taken into account when estimating the fair
value of the equity instruments granted, leading to the options being
valued at a discounted price. The value attributed to the discount
cannot be adjusted, whatever the extent to which the performance
conditions have been met at the end of the vesting period. It is
determined using the Monte Carlo method, which consists of
simulating the performance of Accor shares and the corresponding
index according to a sufficiently large number of Brown scenarios.
Assumptions concerning the probability of options being exercised
are also factored into the Monte Carlo model.
When the options are exercised, the cash settlement is recorded
in cash and cash equivalents and in equity.The amount recognized
in equity is allocated between “Share capital” and “Additional
paid-in capital”.
Performance shares plans
Performance shares plans are also recognized and measured in
accordance with IFRS 2. The recognition and the measurement
principles are those used to recognize and measure the stock option
plans excepted for the measurement of the cost of the performance
share plans corresponding to the Accor opening share price on the
grant date less the present value of dividends unpaid multiplied by
the number of shares issued.
M.2. Treasury stock
Accor shares held by the Company and/or subsidiaries are recognized
as a deduction from equity.
Gains and losses on sales of treasury stock (and the related tax
effect) are recognized directly in equity without affecting profit. No
impairment losses are recognized on treasury stock.
N. Financial instruments
Financial assets and liabilities are recognized and measured in
accordance with IAS 39 “Financial Instruments, Recognition and
Measurement”, and its amendments.
Financial assets and liabilities are recognized in the statement of
financial position when the Group becomes a party to the contractual
provisions of the instrument.
N.1. Financial assets
Financial assets are classified between the three main categories
defined in IAS 39, as follows:
ƒƒ
“loans and receivables” mainly comprise time deposits and loans
to non-consolidated companies. They are initially recognized at
fair value and are subsequently measured at amortized cost at
each balance-sheet date. If there is an objective indication of
impairment, an impairment loss is recognized at the balance-sheet
date.The impairment loss corresponds to the difference between
the carrying amount and the recoverable amount (
i.e.
the present
value of the expected cash flows discounted using the original
effective interest rate) and is recognized in profit or loss. This
loss may be reversed if the recoverable amount increases in a
subsequent period;
ƒƒ
“held to maturity investments” mainly comprise bonds and
other money market securities intended to be held to maturity.
They are initially recognized at fair value and are subsequently
measured at amortized cost at each balance-sheet date. If there
is an objective indication of impairment, an impairment loss
is recognized at the balance-sheet date. The impairment loss
corresponds to the difference between the carrying amount and
the recoverable amount (
i.e.
the present value of the expected
cash flows discounted using the original effective interest rate)
and is recognized in profit or loss. This loss may be reversed if
the recoverable amount increases in a subsequent period.
For these two categories, initial fair value is equivalent to acquisition
cost, because no material transaction costs are incurred;
ƒƒ
“available-for-sale financial assets” mainly comprise investments
in non-consolidated companies, equities, mutual fund units and
money market securities. These assets are measured at fair
value, with changes in fair value recognized in equity. The fair
value of listed securities corresponds to market price (level 1
valuation technique: see Note 1.R) and the fair value of unlisted
equities and mutual funds corresponds to their net asset value
(level 1 valuation technique: see Note 1.R). For unlisted securities,
fair value is estimated based on the most appropriate criteria
applicable to each individual investment (using level 3 valuation
techniques that are not based on observable data: see Note 1.R).
Securities that are not traded on an active market, for which fair
value cannot be reliably estimated, are carried in the statement of
financial position at historical cost plus any transaction expenses.
When there is objective evidence of a significant or prolonged
decline in value, the cumulative unrealized loss recorded in equity
is reclassified to the income statement and can’t be reversed.
1...,190,191,192,193,194,195,196,197,198,199 201,202,203,204,205,206,207,208,209,210,...344
Powered by FlippingBook