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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 20
PROVISIONS AND CONTINGENT LIABILITIES
Provisions
In millions of euros
Beginning
of year
Additions
Reversals
(used
provisions)
Reversals
(unused
provisions)
Other
movements
Year-end
Restructuring costs
2.1
–
(1.0)
(0.5)
(0.3)
0.3
Employee-related risks and tax risks
–
6.8
–
–
–
6.8
Other
0.2
0.1
(0.1)
(0.1)
0.1
0.2
Total long-term provisions
2.3
6.9
(1.1)
(0.6)
(0.2)
7.3
Guarantees for fixed-fee projects and losses
on completion
1.2
0.8
(0.1)
(0.8)
(0.1)
1.0
Restructuring costs
2.5
1.6
(3.4)
–
0.3
1.0
Employee-related risks and tax risks
2.6
1.6
(0.5)
(0.8)
–
2.9
Other
3.4
0.9
–
(2.2)
–
2.1
Total short-term provisions
9.7
4.9
(4.0)
(3.8)
0.2
7.0
Guarantees for fixed-fee projects and losses
on completion
1.2
0.8
(0.1)
(0.8)
(0.1)
1.0
Restructuring costs
4.6
1.6
(4.4)
(0.5)
–
1.3
Employee-related risks and tax risks
2.6
8.4
(0.5)
(0.8)
–
9.7
Other
3.6
1.0
(0.1)
(2.3)
0.1
2.3
TOTAL PROVISIONS
12.0
11.8
(5.1)
(4.4)
–
14.3
The year-on-year change in provisions for restructuring costs relates to the items in Note 31 – Non-recurring income and expenses.
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
aboard a ship, the Acergy Falcon, which was dry-docked in Brest for
maintenance at the time. The main development in this case in 2015
was that the court-appointed expert filed his assessment report, which
stated that ASG was at fault in a number of respects and therefore that
it is jointly liable for the occurrence and extent of the fire, although
the degree of its liability was not quantified. Despite the findings of
this report, 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 INSPECTIONS
France
In late 2014 Assystem France received notification of a €13.5 million
tax reassessment relating to research tax credits. 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
disputing the grounds of the reassessment in their entirety, based notably
on the opinions of legal experts initially issued in 2014 and reiterated
in late 2015. However the Group decided to set aside a provision in
its 2015 financial statements representing 50% of the disputed amount
(
i.e.
€6.8 million), in view of changes in case law in 2015 related
to similar disputes. The Group had already recognised a €2.0 million
provision in its 2014 financial statements to cover the estimated costs
of the procedure, but these costs were re-estimated at €0.5 million in
2015 and €1.5 million of the provision was therefore reversed.
Nigeria
In February 2016 a tax inspection carried out by the Nigerian tax
authorities on MPH Nigeria was completed. The final tax reassessment
notice has not yet been received, but the potential reassessed amounts
are covered by provisions recognised in MPH Nigeria’s balance
sheet when it was acquired by Assystem in 2012. At this stage of the
procedure, the Group does not consider that any additional provisions
need to be set aside.
At the date these consolidated financial statements were approved for
issue there were no other governmental, legal or arbitration proceedings
(including any such proceedings that were pending or threatened of
which it was aware), which may have, or have had in the past 12
months, significant effects on the financial position or profitability of the
Company or the Group.
ASSYSTEM
FINANCIAL REPORT
2015
108