Assystem - 2015 Registration Document

6

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL RISK MANAGEMENT

NOTE 5

these risks, and (iii) implementing controls. The risk management policy and systems are regularly reviewed in order to factor in changes in the Group’s market conditions and operations. Through its management and training procedures and rules, the Group seeks to foster a constructive, rigorous control environment in which staff members have an effective understanding of their roles and duties. The Group’s Audit Committee is responsible for ensuring that the Group’s risk management policy and procedures are effectively applied and for verifying that the Group’s risk management framework is appropriate in light of the risks to which it is exposed. Credit risk Credit risk represents the risk of the Group incurring a financial loss if a client or counterparty to a financial instrument fails to fulfil its contractual obligations.

The Group is exposed to the following risks in its use of financial instruments:

credit risk; market risk;

●

●

● liquidity risk. This note includes information on the Group’s exposure to each of the above risks and those resulting from early repayment clauses related to covenants, as well as its risk management and measurement procedures, objectives and policy. Quantitative information is provided in the other notes to these consolidated financial statements. The Board of Directors defines and oversees the Group’s risk management framework. The Group’s risk management policy is aimed at (i) identifying and analysing the risks to which the Group is exposed, (ii) defining limits for

The Group’s maximum credit risk exposure corresponds to the carrying amount of its financial assets:

Carrying amount

31/12/2015

31/12/2014

In millions of euros

Available-for-sale financial assets Other non-current financial assets

0.2

0.2

11.8

10.7

Trade receivables Other receivables

298.2

280.5

66.3

56.5

Cash and cash equivalents

233.8 610.3

252.2 600.1

TOTAL

CUSTOMER CREDIT RISK In view of the quality of its client portfolio, Management considers that the Group has limited customer credit risk. Beyond a defined threshold and when they are of an unusual nature, business contracts are systematically validated by the Group’s Legal Affairs and Insurance Department

in order to identify, assess and address related risks prior to any firm and final commitment being entered into. The following table shows movements in impairment losses on trade receivables in 2014 and 2015.

2015

2014

In millions of euros

Beginning of year (amount recorded in the statement of financial position)

7.7 0.1 0.8 4.0

7.9

Impairment losses recognised/reversed during the year

(0.4)

Currency translation differences

0.2

Effect of changes in scope of consolidation

–

YEAR-END (AMOUNT RECORDED IN THE STATEMENT OF FINANCIAL POSITION)

12.6

7.7

90

ASSYSTEM

FINANCIAL REPORT 2015