Assystem - 2015 Registration Document

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

Property, plant and equipment In accordance with IAS 16, an asset is classified as property, plant and equipment if it is held for use in the production or supply of goods or services, or for administrative purposes. These assets are recognised in the consolidated statement of financial position if it is likely that the future economic benefits attributable to the asset will flow to the Group and if the cost of the asset can be measured reliably. Property, plant and equipment are depreciated on a straight-line basis over their useful lives, as follows: ● furniture: 10 years Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Subsequent costs are included in the carrying amount of an asset or recognised as a separate component if it is probable that the future economic benefits attributable to that asset corresponding to those costs will flow to the Group and the cost of the asset can be measured reliably. Repair and maintenance costs are expensed in the period they are incurred. The depreciable amount of property, plant and equipment is determined after deducting residual value if this value is deemed material. If significant parts of an item of property plant and equipment have different useful lives and therefore different depreciation periods they are accounted for as separate items (major components) of property, plant and equipment. Investment property IAS 40 defines investment property as property held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services or for administrative purposes. Investment property is measured at fair value and any gains or losses arising from changes in fair value are recognised directly in the income statement. Finance leases Assets acquired under finance leases which transfer substantially all the risks and rewards of ownership of the asset to the lessee are recognised as non-current assets in the consolidated statement of financial position. Financial assets In accordance with IAS 32 and 39, financial assets are measured according to the asset category to which they belong. Regular purchases and sales of financial assets are recognised on the trade date, corresponding to the date on which the Group commits to purchase or sell the asset. Financial assets are initially recognised at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Transaction costs on financial assets at fair value through profit or loss are expensed as incurred. For a description of derivative financial instruments please see the specific section below. ● fixtures, fittings and facilities: 3 to 10 years ● vehicles: 3 to 5 years ● office and IT equipment: 3 to 5 years

LOANS AND RECEIVABLES Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They typically arise when an entity provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in current assets, except for their long-term portion. They are initially recognised at fair value and subsequently measured at amortised cost determined by the effective interest method. An impairment loss is recognised for any difference between the recoverable amount of the asset (the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate) and its amortised cost on the reporting date. These impairment losses are recognised in profit or loss and can be reversed in a subsequent period in the event of a favourable change in circumstances. AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS This category includes shares in non-consolidated companies. They are measured at fair value, and any gains or losses arising from changes in fair value – other than impairment losses – are recognised in other comprehensive income until the asset is derecognised. Impairment losses are recognised in profit or loss. For listed shares, fair value corresponds to the market price. Shares whose fair value cannot be measured reliably are recognised at historical cost. On each reporting date, the fair value of AFS financial assets is calculated and recorded in the statement of financial position. An impairment loss is recognised in profit or loss if there is an objective indication that the asset is impaired, such as a significant or prolonged decline in value. Impairment losses recognised against AFS financial assets may only be reversed when the assets are derecognised. Treasury shares In accordance with IAS 32, shares in the Group’s parent company held by itself or any of its subsidiaries are recognised at cost as a deduction from equity. No fair value gains or losses are recognised on these shares. Post-tax gains or losses arising on the disposal of treasury shares are recognised directly in equity.

6

Trade receivables This item includes:

● services invoiced but not yet paid for;

● services completed but not yet invoiced, measured at the sale price;

● work-in-progress measured at cost price.

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any impairment losses. An impairment loss is recognised if there is objective evidence that the Group will be unable to collect all the contractual amounts due. The amount of the impairment loss recognised corresponds to the difference between the amount recorded under assets and the fair value of the discounted future cash flows.

83

ASSYSTEM

FINANCIAL REPORT 2015