SOLOCAL_Registration Document_2017

6

FINANCIAL STATEMENTS 6.2 Annual financial statements for the financial years ended 31 December 2016 and 2017

NOTES TO THE ANNUAL FINANCIAL STATEMENTS 6.2.3

NOTE 1. NOTE 2. NOTE 3. NOTE 4.

Business activities

190

Accounting rules and methods

190

Additional information on the balance sheet and income statement

191

Other

200

NOTE 1.

BUSINESS ACTIVITIES

The SoLocal Group is a holding company and, as such, has visibility and local contacts as well as creating and updating the subsidiaries whose mission is to “reveal local know-how best personalised professional local content for users.

everywhere and stimulate local business activity”. The Group offers its customers digital services and solutions to increase their

The accounting information provided below covers the 12-month period from 1 January 2017 to 31 December 2017.

NOTE 2.

ACCOUNTING RULES AND METHODS

The main methods employed are described below. All figures are in thousands of euros (€K). The SoLocal Group’s annual financial statements were prepared in accordance with the legal requirements and generally accepted accounting practices in France and also with ANC regulation No. 2016-07 dated 4 November 2016 on the revision of the French General Chart of Accounts. The accounting policies have been applied in accordance with the principle of caution in accordance with the basic assumptions: continuity of operations, consistency of accounting methods from one financial year to another, independence of financial years, in accordance with the general rules for the preparation and

2.2

INVESTMENTS IN ASSOCIATES AND OTHER NON-CURRENT SECURITIES

Equity interests in associates are recorded at their historical acquisition cost, which includes any costs directly related to the acquisition. Impairment is recognised if the historical cost of these securities is greater than their value in use, as determined by SoLocal Group’s management on the basis of various criteria, such as market value, the outlook for growth and profitability, shareholders’ equity and each equity interest’s specific characteristics. When the value in use is determined by discounting expected cash flows adjusted to account for net debt, the latter are determined in the following manner: the cash flows used are those projected in business plans that l cover a sufficiently long period, which is usually five years; beyond this period, cash flows are extrapolated using a perpetual l growth rate that reflects the forecast long-term growth rate of the market for each specific business activity; cash flows are discounted at rates that are deemed appropriate l given the nature of the business activity and the country.

presentation of the annual financial statements. The main methods employed are described below. All figures are in thousands of euros.

2.1

TANGIBLE AND INTANGIBLE

FIXED ASSETS

Intangible fixed assets include software, which is amortised on a prorated basis over three years. Property, plant and equipment includes office equipment and furniture depreciable over ten years, computer equipment depreciable over three years, and fixed assets under construction.

190 2017 Registration Document SOLOCAL