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E
Financial
E.4
Consolidated financial statements
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contract duration, the period of amortization will be between 5
and 12 years with a standard scenario of 7 years. It is
typically the case for large mutualized payment platforms.
for internal software development with slow technology
•
obsolescence serving activities with a long business cycle and
earning method that consists in summing future operating
margins attributable to contracts, after tax and capital
employed.
Customer relationships are valued as per the multi-period excess
of a business combination are amortized on a straight-line basis
over their expected useful life, generally not exceeding 12 years;
any related depreciation is recorded in other operating expenses.
Intangible assets are amortized on a straight-line basis over
their expected useful life, generally not exceeding 5 to 7 years
for internally developed IT solutions in operating margin.
customer relationships, patents and trademarks acquired as part
Tangible assets
Tangible assets are recorded at acquisition cost. They are
depreciated on a straight-line basis over the following expected
useful lives:
buildings
•
20 years;
fixtures and fittings
•
5 to 10 years;
computer hardware
•
3 to 5 years;
vehicles
•
4 years;
office furniture and equipment
•
5 to 10 years;
Although some outsourcing contracts may involve the transfer of
computing equipment to Atos, control of the asset usually
remains with the customer as they generally retain the asset.
When ownership of the computing equipment is transferred to
the Group a payment generally occurs at the beginning of the
contract. Therefore IFRIC 18 does not have a significant impact
on the Group accounts.
Leases
lease term.
minimum lease payments. Assets acquired under finance lease
are depreciated over the shorter of the assets’ useful life and the
Asset leases where the Group has substantially all the risks and
rewards of ownership are classified as finance leases. Finance
leases are capitalized at the lease’s inception at the lower of the
fair value of the leased asset and the present value of the
Leases where the lessor retains substantially all the risks and
rewards of ownership are classified as operating leases.
Impairment of assets other than goodwill
whenever events or circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset’s carrying value
exceeds its recoverable value.
Assets that are subject to amortization are tested for impairment
Financial assets
Financial assets are accounted for at trade date.
Investments in non-consolidated companies
expense”.
in the fair value of available for sale assets are recognized as
“items recognized directly in equity”. If there is evidence that an
asset is permanently impaired, the cumulative loss is written off
in the income statement under “other financial income and
evidence of a permanent or significant loss of value. The most
common financial criteria used to determine fair value are equity
and earnings outlooks. Gains and losses arising from variations
corresponds to the share price at the closing date. In the
absence of an active market for the shares, investments in
non-consolidated companies are carried at historical cost. An
impairment charge is recognized when there is objective
The Group holds shares in companies without exercising
significant influence or control. Investments in non-consolidated
companies are treated as assets available for sale and
recognized at their fair value. For listed shares, fair value
Available-for-sale financial assets
cost.
the specific security. If the fair value of an available-for-sale
financial asset cannot be reliably measured, it is recognized at
comprehensive income is transferred to the income statement.
For securities listed on an active market, fair value is considered
to equal market value. If no active market exists, fair value is
generally determined based on appropriate financial criteria for
non-consolidated entities. They are measured at fair value, with
changes in fair value recognized in other comprehensive income.
When an available-for-sale financial asset is sold or impaired;
the cumulative fair value adjustment recognized in other
Available-for-sale financial assets include equity investments in
Loans, trade accounts and notes receivable
problems into account.
provision is raised on an individual basis to take likely recovery
value represents usually the initial fair value for trade accounts
and notes receivable. In case of deferred payment over one
year, where the effect is significant on fair value, trade accounts
and notes receivables are discounted. Where appropriate, a
Loans are part of non-current financial assets. Loans, trade
accounts and notes receivable are recorded initially at their fair
value and subsequently at their amortized value. The nominal
financial assets” for the amount to be settled beyond 12 months.
the risks and rewards of ownership of the asset to its customers,
the Group recognizes assets held under finance lease and
presents them as “Trade accounts and notes receivable” for the
amount that will be settled within 12 months, and “Non-current
lease contracts if they convey a right to use an asset in return
for payments included in the overall contract remuneration. If
service arrangements contain a lease, the Group is considered to
be the lessor regarding its customers. Where the lease transfers
Certain service arrangements might qualify for treatment as