Consolidated Financial Statements and Notes
S.10.Profit or loss from discontinued operations
A discontinued operation is a component of Accor that has been
disposed of or is classified as held for sale and:
represents a separate major line of business or geographical
area of operations;
is part of a single coordinated plan to dispose of a separate major
line of business or geographical area of operations or;
is a subsidiary acquired exclusively with a view to resale.
Profit or loss from discontinued operations corresponds to:
the profit or loss net of tax of the discontinued operations
carried out until the date of transfer or until the closing date if
the discontinued operation is not sold at this date;
the gain or loss net of tax recognized on the disposal of the
discontinued operations if the discontinued operation has been
sold before the closing date.
S.11.Cash flow statement
The cash flow statement is presented on the same basis as the
management reporting schedules used internally to manage the
business. It shows cash flows from operating, investing and
Cash flows from operating activities include:
funds from operations, before non-recurring items and after
adjustment for changes in deferred taxes and gains and losses
on disposals of assets;
cash received and paid on non-recurring transactions;
changes in working capital.
Cash flows from investing activities comprise:
renovation and maintenance expenditure to maintain in a good
state of repair operating assets held at January 1 of each year;
development expenditure, including the fixed assets and working
capital of newly consolidated subsidiaries and additions to fixed
assets of existing subsidiaries;
development expenditure on non-current assets classified as
held for sale;
proceeds from disposals of assets.
Cash flows from financing activities include:
changes in equity;
changes in debt;
T. Earnings per share
The methods used to calculate basic and diluted earnings per share
are in accordance with IAS 33 “Earnings Per Share”.
The interest paid in relation to securities recognized as equity (see
Note 2 M.3) is deducted from the earnings amount used to calculate
earnings per share.
U. Other information
Current assets and liabilities are assets and liabilities that the Group
expects to recover or settle:
in the normal course of business; or
within twelve months of the period-end.
The consolidated financial statements at December 31, 2014
have been prepared under the responsibility of Accor’s Chairman
and Chief Executive Officer. They were approved by the Board of
Directors of February 17, 2015.
SIGNIFICANT EVENTS AND CHANGES IN SCOPE OF CONSOLIDATION
On November 27, 2013, led by newly appointed Chairman and Chief
Executive Officer Sébastien Bazin, Accor decided to redefine its
business model around two strategic businesses:
Hotel operator and brand franchiser HotelServices, with a business
model focused on generating revenue from fees and optimizing
the income statement;
Hotel owner and first investor in Europe HotelInvest, with a
business model aimed at improving the return on assets and
optimizing the statement of financial position.
The new structure reaffirms the strategic nature of Accor’s two
traditional areas of expertise – asset management and owner
services – by separating the relevant functions, responsibilities
and objectives to build a more efficient business model.The hotels
owned by HotelInvest (owned or leased hotels) are operated by
HotelServices under management contracts.
HotelServices’ main challenges are to:
implement a business model based on generating fees, with
a portfolio of services adapted to owners’ needs, focusing on
contract profitability and optimizing cost management to enhance
the financial performance of Accor and its partners;
optimize sales and marketing strategies, with projects in such
areas as customer relationship management, loyalty programs
and, more generally, digital services to enable more agile revenue
management and more effective use of distribution channels,
including online travel agencies (see Note A.1 below);
strengthen the brands, which have now been reorganized into
three segments: Luxury & Upscale, which focuses on service
excellence and a development strategy that targets high-profile
hotels in strategic cities; Midscale, where a particular emphasis is
placed on innovation to more effectively differentiate the brands;
and Economy, where the aim is to capitalize on the successful
creation of the ibismegabrand to accelerate the growth, consolidate
market leadership and capitalize on economies of scale.
Registration Document 2014