2014 Registration Document and Annual Financial Report - page 179

5
Financial Statemements
Consolidated Financial Statements and Notes
NOTE 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Framework
In accordancewith European Commission regulation 1606/2002 dated
July 19, 2002 on the application of international financial reporting
standards, the Accor Group consolidated financial statements for the
year ended December 31, 2014, have been prepared in accordance
with the International Financial Reporting Standards (IFRSs) adopted
by the European Union as of that date. They include comparative
2013 annual financial information, prepared in accordance with the
same standards.
At December 31, 2014, all of the International Financial Reporting
Standards (including IFRSs, IASs and Interpretations) published
by the International Accounting Standards Board (“IASB”) had
been adopted by the European Union, with the exception of IFRIC
21 – Levies. This interpretation is applicable in Europe in financial
periods beginning on or after January 1, 2015 and the Group has
decided to apply it as from that date. The effects of applying this
interpretation on the consolidated financial statements taken as a
whole will not be material. As a result, the Group’s consolidated
financial statements have been prepared in accordance with
International Financing Reporting Standards as published by the IASB.
The following new standards and amendments to existing standards
adopted by the European Unionwere applicable fromJanuary 1, 2014:
ƒƒ
IFRS 10 – Consolidated Financial Statements, IFRS 11 – Joint
Arrangements, IFRS 12 – Disclosure of Interests in Other Entities,
IAS 27R – Separate Financial Statements, IAS 28R – Investments
in Associates and Joint Ventures, and their amendments. These
standards introduce a new definition of control and no longer
allow joint ventures to be consolidated by the proportionate
method. Consequently, joint arrangements that are classified
as joint ventures are now accounted for by the equity method,
which is now the only recognized method. For joint arrangements
that are classified as joint operations, the Group accounts for
its contractual share of the assets and liabilities, revenues and
expenses of the joint operation on the corresponding lines of
the consolidated statement of financial position and income
statement.The following companies are qualified as joint ventures
based on the criteria in IFRS 11: Adagio, Reef Casinos and
Société Immobilière d’Exploitation Hôtelière Algérienne. These
companies have been accounted for by the equity method as
from January 1, 2014. They were all previously consolidated by
the proportionate method.
The first-time adoption of these standards represented a change in accounting policy under IAS 8 and the new policy has therefore been
applied retrospectively to all periods presented. The effects on the consolidated financial statements are as follows:
(inmillions of euros)
Dec. 2013
Published
Impact
IFRS 11
Dec. 2013
Adjusted
CONSOLIDATED REVENUE
5,536
(111)
5,425
Operating Expense
(3,777)
83
(3,694)
EBIT
536
(15)
521
Net financial expense
(92)
2
(90)
Share of profit of associates after tax
2
9
11
OPERATING PROFIT BEFORE TAX AND NON RECURRING ITEMS
446
(4)
442
OPERATING PROFIT BEFORE TAX
259
(3)
256
Income tax expense
(121)
1
(120)
NET PROFIT OR LOSS
139
(2)
137
NET PROFIT OR LOSS, GROUP SHARE
126
-
126
Registration Document 2014
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