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FINANCIAL STATEMENTS
6
PARENT COMPANY FINANCIAL STATEMENTS
Shares in subsidiaries and affiliates
Shares in subsidiaries and affiliates are stated at historical cost or
contribution value.
Disposals of these shares are measured on the basis of cost price
and capital gains or losses are calculated using the book value of the
shares sold.
A provision for impairment in value is recognised when the purchase
cost of the shares is higher than their value in use, which is assessed
independently based on either:
●
projected future cash flows, or
●
the multiples method, using comparisons with other companies
operating in the same sector.
If there is no available data, value in use is calculated based on
Assystem’s equity in the underlying net assets of the entities concerned.
Transaction costs on acquisitions 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
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.
Retirement bonuses
N/A.
Provisions for contingencies and charges
Provisions for contingencies and charges are recognised in compliance
with French GAAP.
Provisions for employment tribunal claims
These provisions are measured on a case-by-case basis taking into
account the risk concerned and the reasons for the claim.
Provisions for risks relating to subsidiaries
A provision is recognised for subsidiaries in relation to which the
Company is exposed to a risk.
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 judgement applied are based on
the information available or 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 used mostly relate to the preparation of
business plans utilised for assessing the value of shares in subsidiaries
and affiliates.
ASSYSTEM
FINANCIAL REPORT
2015
134