Atos - Registration Document 2016

E Financial E.4

Consolidated financial statements

Presentation rules Current and non-current assets and liabilities

Translation of transactions denominated in foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the dates of the financial instruments”. statement under the heading “Other financial income and expenses”, except where hedging accounting is applied as explained in the paragraph “Financial assets – Derivative transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income purchase of some of the net assets of another entity that together form one or more businesses. A business combination may involve the purchase of another entity, the purchase of all the net assets of another entity or the enable the Group to develop or significantly improve its competitive position within a business or a geographical sector are accounted for as business combinations. Major services contracts involving staff and asset transfers that newly acquired subsidiaries Valuation of assets acquired and liabilities assumed of Business combinations are accounted for according to the acquisition method. The consideration transferred in exchange for control of the acquired entity is measured at fair value, which issued by the Group in exchange for control of the acquiree. to the former owners of the acquiree and the equity interests is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group Direct transaction costs related to a business combination are charged to the income statement when incurred. measured either at fair value or based on their stake in the fair value of the identifiable assets and liabilities of the acquired entity. The choice of measurement basis is made on a transaction-by-transaction basis. Non-controlling interests may, on the acquisition date, be contingent liabilities of the subsidiary acquired are measured at their fair value. During the first consolidation, all the assets, liabilities and In step acquisitions, any equity interest held previously by the Group is remeasured at fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss is recognized in net income. Purchase of non-controlling interests and sale of interests in a controlled subsidiary Purchase of non-controlling interests and sale transactions of interests in a controlled subsidiary that do not change the status of control are recorded through shareholders’ equity (including direct acquisition costs). Business combination and goodwill

borrowings, financial receivables and provisions represent the Group’s working capital requirement. realized, used or settled during the normal cycle of operations, which can extend beyond 12 months following period-end. All other assets and liabilities are classified as non-current. Current assets and liabilities, excluding the current portion of Assets and liabilities classified as current are expected to be transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the assets and liabilities are available for immediate sale in their present condition. previous periods. They are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets and liabilities are classified as held for sale if their carrying amount will be recovered principally through a sale lines in the Group’s balance sheet, without restatements for Should there be assets and liabilities held for sale or discontinued operations, they would be presented on separate business line or a business unit, the profit or loss from these activities are presented on a separate line of the income Should these assets and liabilities represent either a complete statement, and is restated in the cash flow statement and the income statement. margin” definitions by excluding equity based compensation effects from the calculation of financial performance, in line with sector practice. The Group decided to change the “free cash flow” and “operating based compensation and the amortization cost of equity based compensation plans is excluded from the “operating margin” and presented in “other operating income and expenses”. As such, Group free cash flow excludes proceeds from equity decreased by € 57 million. This change in presentation has been applied retroactively to the period presented and as a consequence of this reclassification, the full year 2015 “operating margin” have been increased by € 33.3 million and the full year 2015 Group free cash flow Translation of financial statements denominated in foreign currencies The balance sheets of companies based outside the euro zone are translated at closing exchange rates. Income statement items are translated based on average exchange rates for the period. Balance sheet and income statement translation adjustments arising from a change in exchange rates are recognized as a separate component of equity under “Translation adjustments”. a foreign entity have been treated as assets and liabilities of that foreign entity and translated into euro at the closing date. Goodwill and fair value adjustments arising on the acquisition of The Group does not consolidate any entity operating in a hyperinflationary economy. Assets and liabilities held for sale and discontinued operations Change in free cash flow and operatingmargin definition

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