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FINANCIAL STATEMENTS
6
CONSOLIDATED FINANCIAL STATEMENTS
Property, plant and equipment
In accordance with IAS 16, an asset is classified as property, plant and
equipment if it is held for use in the production or supply of goods or
services, or for administrative purposes. These assets are recognised
in the consolidated statement of financial position if it is likely that the
future economic benefits attributable to the asset will flow to the Group
and if the cost of the asset can be measured reliably. Property, plant
and equipment are depreciated on a straight-line basis over their useful
lives, as follows:
●
fixtures, fittings and facilities: 3 to 10 years
●
vehicles: 3 to 5 years
●
office and IT equipment: 3 to 5 years
●
furniture: 10 years
Property, plant and equipment are measured at cost less accumulated
depreciation and any accumulated impairment losses.
Subsequent costs are included in the carrying amount of an asset or
recognised as a separate component if it is probable that the future
economic benefits attributable to that asset corresponding to those
costs will flow to the Group and the cost of the asset can be measured
reliably. Repair and maintenance costs are expensed in the period
they are incurred.
The depreciable amount of property, plant and equipment is determined
after deducting residual value if this value is deemed material. If
significant parts of an item of property plant and equipment have
different useful lives and therefore different depreciation periods they
are accounted for as separate items (major components) of property,
plant and equipment.
Investment property
IAS 40 defines investment property as property held to earn rentals or
for capital appreciation or both, rather than for use in the production
or supply of goods or services or for administrative purposes.
Investment property is measured at fair value and any gains or losses
arising from changes in fair value are recognised directly in the income
statement.
Finance leases
Assets acquired under finance leases which transfer substantially all the
risks and rewards of ownership of the asset to the lessee are recognised
as non-current assets in the consolidated statement of financial position.
Financial assets
In accordance with IAS 32 and 39, financial assets are measured
according to the asset category to which they belong. Regular purchases
and sales of financial assets are recognised on the trade date,
corresponding to the date on which the Group commits to purchase
or sell the asset. Financial assets are initially recognised at fair value
plus, in the case of financial assets not measured at fair value through
profit or loss, transaction costs. Transaction costs on financial assets at
fair value through profit or loss are expensed as incurred.
For a description of derivative financial instruments please see the
specific section below.
LOANS AND RECEIVABLES
Loans and receivables are non-derivative financial assets with fixed
or determinable payments that are not quoted in an active market.
They typically arise when an entity provides money, goods or services
directly to a debtor with no intention of trading the receivable. They are
included in current assets, except for their long-term portion. They are
initially recognised at fair value and subsequently measured at amortised
cost determined by the effective interest method. An impairment loss
is recognised for any difference between the recoverable amount of
the asset (the present value of estimated future cash flows discounted
at the financial asset’s original effective interest rate) and its amortised
cost on the reporting date. These impairment losses are recognised in
profit or loss and can be reversed in a subsequent period in the event
of a favourable change in circumstances.
AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS
This category includes shares in non-consolidated companies. They are
measured at fair value, and any gains or losses arising from changes
in fair value – other than impairment losses – are recognised in other
comprehensive income until the asset is derecognised. Impairment losses
are recognised in profit or loss. For listed shares, fair value corresponds
to the market price. Shares whose fair value cannot be measured reliably
are recognised at historical cost.
On each reporting date, the fair value of AFS financial assets is
calculated and recorded in the statement of financial position. An
impairment loss is recognised in profit or loss if there is an objective
indication that the asset is impaired, such as a significant or prolonged
decline in value. Impairment losses recognised against AFS financial
assets may only be reversed when the assets are derecognised.
Treasury shares
In accordance with IAS 32, shares in the Group’s parent company
held by itself or any of its subsidiaries are recognised at cost as a
deduction from equity. No fair value gains or losses are recognised on
these shares. Post-tax gains or losses arising on the disposal of treasury
shares are recognised directly in equity.
Trade receivables
This item includes:
●
services invoiced but not yet paid for;
●
services completed but not yet invoiced, measured at the sale price;
●
work-in-progress measured at cost price.
Trade receivables are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method, less any
impairment losses. An impairment loss is recognised if there is objective
evidence that the Group will be unable to collect all the contractual
amounts due. The amount of the impairment loss recognised corresponds
to the difference between the amount recorded under assets and the
fair value of the discounted future cash flows.
ASSYSTEM
FINANCIAL REPORT
2015
83