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E
Financial
E.4
Consolidated financial statements
Atos
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Registration Document 2016
153
E
Accounting estimates and judgments
contingent assets and liabilities at the closing date. The
estimates, assumptions and judgments that may result in a
significant adjustment to the carrying amounts of assets and
liabilities are essentially related to:
that affect the reported amounts of assets and liabilities, income
and expense in the financial statements and disclosures of
management to make judgments, estimates and assumptions
The preparation of consolidated financial statements requires
Goodwill impairment tests
are determined based on value-in-use calculations or on their
fair value reduced by the costs of sales. These calculations
require the use of estimates as described in Note 11 Goodwill.
The Group tests at least annually whether goodwill has suffered
any impairment, in accordance with the accounting policies
stated below. The recoverable amounts of cash generating units
Measurement of recognized tax loss carry-forwards
local specificities).
taxable profits and utilizations of tax loss carry-forwards were
prepared on the basis of profit and loss forecasts as included in
the 3-year business plans (other durations may apply due to
Deferred tax assets are recognized on tax loss carry-forwards
when it is probable that taxable profit will be available against
which the tax loss carry-forwards can be utilized. Estimates of
Revenue recognition and associated costs on long-term
contracts
revenue and possible forecast losses on completion that are
recognized.
losses on completion are measured according to policies stated
below. Total projected contract costs are based on various
operational assumptions such as forecast volume or variance in
the delivery costs that have a direct influence on the level of
Revenue recognition and associated costs, including forecast
Pensions
investigations carried-out when appropriate. The estimation of
pension liabilities, as well as valuations of plan assets requires
the use of estimates and assumptions.
The Group uses actuarial assumptions and methods to measure
pension costs and provisions. The value of plan assets is
determined based on valuations provided by the external
custodians of pension funds and following complementary
Customer relationships
assumptions of renewal conditions of contract and on the
discounted flows of these contracts. This asset is amortized on
an estimation of its average life.
backlog brought during a business combination is recognized as
customer relationships. The value of this asset is based on
An intangible asset related to the customer relationships and
Consolidationmethods
Subsidiaries
Subsidiaries are entities controlled directly or indirectly by the
Group. Control is defined by the ability to govern the financial
consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date on which control
ceases.
that are currently exercisable or convertible, the power to
appoint the majority of the members of the governing bodies
and the existence of veto rights are considered when assessing
whether the Group controls another entity. Subsidiaries are fully
and operating policies generally, but not systematically,
combined with a shareholding of more than 50 percent of the
voting rights. The existence and effect of potential voting rights
Segment reporting
strategic decisions.
of the operating segments, has been identified as the company
CEO and Chairman of the Board of Directors who makes
reconciled to Group profit or loss. The chief operating decision
maker assesses segments profit or loss using a measure of
operating profit. The chief operating decision maker, who is
responsible for allocating resources and assessing performance
According to IFRS 8, reported operating segments profits are
based on internal management reporting information that is
regularly reviewed by the chief operating decision maker, and is
been determined by the Group as key indicators by the Chief
operating decision maker. As a result and for IFRS 8
requirements, the Group discloses Global Business Units as
operating segments.
The internal management reporting is built on two axes: Global
Business Units and Divisions (Business & Platform Solutions
(B&PS), Infrastructure & Data Management (IDM), Big Data &
Cybersecurity (BDS), Worldline). Global Business Units have
without taking into consideration the activities exercised within
each country. Each Business Unit is managed by dedicated
members of the Executive Committee.
aggregation of several geographical areas - except for the
Worldline activities which contains one or several countries,
A Business Unit is defined as a geographical area or the
headquarters. Shared assets such as the European mainframe
are allocated to the Business Unit where they are physically
located even though they are used by several Business Units.
statements). Corporate assets which are not directly attributable
to the business activities of any operating segments are not
allocated to a segment, which primarily applies to the Group’s
reporting under IFRS 8 are the same as those used in its
financial statements. Corporate entities are not presented as an
operating segment. Therefore, their financial statements are
used as a reconciling item (refer Note 2 of the financial
The measurement policies that the Group uses for segmental