Atos - Registration Document 2016

E Financial

E.4

Consolidated financial statements

Assets securitization

Pensions and similar benefits

transferred assets and the financial liability are valued at their amortized costs. Assets securitization programs, in which the Group retains substantially all the risks and rewards of ownership of the transferred assets, do not qualify for de-recognition. A financial liability for the consideration received is recognized. The accounting, whereupon: Derivative instruments are recognized as financial assets or liabilities at their fair value. Any change in the fair value of these derivatives is recorded in the income statement as a financial income or expense, except when they are eligible for hedge for fair value hedging of existing assets or liabilities, the • hedged portion of an instrument is measured on the balance sheet at its fair value. Any change in fair value is recorded as Derivative financial instruments hedging instruments; a corresponding entry in the income statement, where it is offset simultaneously against changes in the fair value of for cash flow hedging, the effective portion of the change in • fair value of the hedging instrument is directly offset in shareholders’ equity as “items recognized directly in equity”. The change in value of the ineffective portion is recognized in “Other financial income and expenses”. Amounts deferred in equity are taken to the income statement at the same time as the related cash flow. Cash and cash equivalents Cash and cash equivalents include cash at bank and financial instruments such as money market securities. Such financial instruments are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. They fair value. Changes in fair value are recorded in the income statement under “Other financial income and expenses”. but provide for early withdrawal and a capital guarantee may also be classified as cash equivalents under certain circumstances. Money market securities are recognized at their are held for the purpose of meeting short-term cash commitments and have a short maturity, in general three months or less from the date of acquisition. Some instruments, such as term deposits, that have at inception a longer maturity Cash and cash equivalents are measured at their fair value through profit and loss. For entities having subscribed to the Group cash pooling agreement, the cash/debt balance sheet positions which are linked to this agreement are mutualized and only the net position is presented in the consolidated balance sheet.

when the related services have been provided by beneficiaries. on contributions paid or due in respect of the accounting period Employee benefits are granted by the Group through defined contribution and defined benefit plans. Costs relating to defined contribution costs are recognized in the income statement based single actuarial method known as the “projected unit credit method”. This method relies in particular on projections of future benefits to be paid to Group employees, by anticipating the effects of future salary increases. Its implementation further The valuation of Group defined benefit obligations is based on a includes the formulation of specific assumptions, detailed in Note 20, which are periodically updated, in close liaison with external actuaries used by the Group. at their fair value, determined at closing. Plan assets usually held in separate legal entities are measured The fair value of plan assets is determined based on valuations provided by the external custodians of pension funds and following complementary investigations carried-out when appropriate. From one accounting period to the other, any difference between the projected and actual pension plan obligation and their period are recognized in “other comprehensive income”. experience adjustments generated by actual developments differing, in the accounting period, from assumptions determined at the end of the previous accounting period. All actuarial gains and losses on post-employment benefit plans generated in the related assets is combined at each benefit plan’s level to form actuarial differences. These actuarial differences may result either from changes in actuarial assumptions used, or from income and expenses”. Benefit plan costs are recognized in the Group’s operating income, except for interest costs on obligations, net of expected returns on plans assets, which are recognized in “other financial Provisions Provisions are recognized when: the Group has a present legal, regulatory, contractual or • constructive obligation as a result of past events and; it is probable that an outflow of resources embodying • economic benefits will be required to settle the obligation; and the amount has been reliably quantified. • Provisions are discounted when the time value effect is material. Changes in discounting effects at each accounting period are recognized in financial expenses.

E

Treasury stock

equity. In the event of a disposal, the gain or loss and the related tax impacts are recorded as a change in consolidated shareholders’ equity. acquired cost as a deduction from consolidated shareholders’ Atos shares held by the parent company are recorded at their

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