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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9
PROVISIONS AND CONTINGENT LIABILITIES
In accordance with IAS 37, a provision is recorded when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the
obligation can be measured reliably.
Where the effect of the time value of money is material, provisions are discounted using a discount rate that reflects the current market
assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision
due to the passage of time is recognised as a financial expense.
9.1 Provisions
In millions of euros
01/01/2016 Additions
Reversals
(used provisions)
Reversals
(unused provisions)
Other
movements
31/12/2016
Restructuring costs
0.3
–
–
–
(0.2)
0.1
Employee-related risks and tax risks
6.8
–
–
–
0.5
7.3
Other
0.2
0.1
–
–
(0.1)
0.2
Total long-term provisions
7.3
0.1
–
–
0.2
7.6
Guarantees for fixed-fee projects and losses on completion
1.0
0.6
(0.2)
(0.8)
–
0.6
Restructuring costs
1.0
1.3
(1.7)
(0.4)
0.2
0.4
Employee-related risks and tax risks
2.9
1.5
(1.1)
(0.6)
0.5
3.2
Other
2.1
1.8
(0.3)
(0.7)
0.1
3.0
Total short-term provisions
7.0
5.2
(3.3)
(2.5)
0.8
7.2
Guarantees for fixed-fee projects and losses on completion
1.0
0.6
(0.2)
(0.8)
–
0.6
Restructuring costs
1.3
1.3
(1.7)
(0.4)
–
0.5
Employee-related risks and tax risks
9.7
1.5
(1.1)
(0.6)
1.0
10.5
Other
2.3
1.9
(0.3)
(0.7)
–
3.2
Total provisions
14.3
5.3
(3.3)
(2.5)
1.0
14.8
9.2 Contingent liabilities
ASG LEGAL DISPUTE
ASG is involved in a legal dispute with Acergy (since renamed Subsea
7) and Iska Marine concerning a fire that occurred in January 2010
on board a ship – the Acergy Falcon – which was dry-docked in Brest
for maintenance at the time. There were no significant developments in
this case during 2016. The only noteworthy facts during the year were
of a procedural nature as the proceedings concerning the merits of the
case were re-listed with the Brest Commercial Court, which ordered
that all of the pending cases related to this same incident should be
joined and heard together. As in prior periods, Assystem still considers
that there is no evidence that ASG was at fault or that it will necessarily
be held fully or partially liable. In addition, as in previous periods, the
Group confirms that in the event ASG is held liable, this claim would
be covered under the Group’s third-party liability insurance policies.
TAX AUDIT
France
In late 2014 Assystem France received notification of a €13.5 million
tax reassessment relating to research tax credits. Assystem considers
that this reassessment is based on a general position taken by the
French tax authorities which is applicable to all of the French companies
concerned. Assystem is contesting the grounds of the reassessment in
their entirety. However, in view of new case law in 2015, and based
on the opinions of legal experts, the Group set aside a €7.3 million
provision in its 2015 financial statements. At 31 December 2016
Assystem had not yet received a payment notice from the tax authorities
for the reassessed amount and the valuation of the related risk was
unchanged compared with 31 December 2015.
At the date this Registration Document was filed, the Company was
not aware of any other governmental, legal or arbitration proceedings
(including any pending or potential proceedings), that could have, or
have had in the last 12 months, a significant impact on the financial
situation or profitability of the Company or the Group.
ASSYSTEM
REGISTRATION DOCUMENT
2016
114