ASSYSTEM_Registration_Document_2017

6

FINANCIAL STATEMENTS

PARENT COMPANY FINANCIAL STATEMENTS

Main sources of estimation uncertainty The preparation of financial statements involves the use of estimates and assumptions that may affect the carrying amounts of certain items in the balance sheet and/or income statement as well as the disclosures in the notes. Assystem regularly reviews these estimates and assumptions and adjusts them where necessary to take into account past experience and other factors believed to be reasonable in light of the prevailing economic conditions. As the estimates, assumptions and judgements applied are based on the information available and circumstances existing on the date when the financial statements were prepared they may not reflect actual future events. The main estimates made concern provisions for contingencies and charges, and the assumptions applied mostly relate to the preparation of business plans used for assessing the value of shares in subsidiaries and affiliates. These costs are expensed as incurred. For tax purposes, they are added back in the year in which the shares are acquired and then deducted over a period of five years as from the acquisition date. Other long-term investments Other long-term investments are recognised at their nominal value. Receivables Receivables and payables are stated at nominal value. Provisions are recorded to cover any risk of non-recovery of receivables. The majority Transaction costs on acquisitions of shares in subsidiaries and affiliates

of the receivables recognised by the Company correspond to amounts due from related companies.

Debt issuance costs Debt issuance costs are fully expensed in the year in which they are incurred. Marketable securities Marketable securities are stated at the lower of cost (excluding incidental expenses) and fair value. Foreign currency transactions Income and expenses denominated in foreign currency are translated into euros using the transaction-date exchange rates. Payables, receivables and cash and cash equivalents denominated in foreign currency are translated using the exchange rates prevailing at the year end. Foreign exchange gains and losses resulting from the translation of these assets and liabilities at year-end exchange rates are recognised in the balance sheet under “Unrealised foreign exchange gains” or “Unrealised foreign exchange losses”. A provision for contingencies is recognised for the full amount of any unrealised foreign exchange losses that are not offset by unrealised foreign exchange gains. Provisions for contingencies and charges Provisions for contingencies and charges are recognised in compliance with French GAAP. Provisions for risks relating to subsidiaries A provision is recognised for subsidiaries in relation to which the Company is exposed to a risk.

NOTES TO THE BALANCE SHEET AND INCOME STATEMENT

NOTE 3

3-1. Change in the gross value of fixed assets

Gross value at beginning of year Increase in gross value Decrease in gross value Gross value at year-end

In thousands of euros

Intangible assets

747

- -

- -

747

Property, plant and equipment

4,446

4,446

Long-term investments

426,550 431,743

508,552 508,552

485,466 485,466

449,637 454,830

Total

Year-on-year changes in long-term investments primarily relate to the purchases and sales of shares in subsidiaries and affiliates referred to in Note 1 above, as well as new loans granted to subsidiaries and the treasury share transactions described in Section 3.2 below.

At 31 December 2017, intangible assets broke down as €704 thousand in software, €15 thousand corresponding to a fully-amortised patent and €28 thousand in goodwill. Property, plant and equipment broke down as €3,499 thousand in buildings, fixtures and fittings, €696 thousand in office furniture and equipment and €251 thousand in works of art.

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ASSYSTEM

REGISTRATION DOCUMENT 2017