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E
Financial
E.4
Consolidated financial statements
Atos
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Registration Document 2016
159
E
Other operating income and expenses
“Other operating income and expenses” covers income or
expense items that are unusual, abnormal and infrequent. They
are presented below operating margin.
Charges to (or releases from) restructuring and rationalization
plans and associated costs are classified in the income statement
according to the nature of the plan:
Operating margin;
plans directly related to operations are classified within
•
income;
plans relating to business combinations or qualified as
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unusual, infrequent and abnormal are classified in Operating
if a restructuring plan qualifies for Operating income, the
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related real estate rationalization & associated costs regarding
premises are also presented in Operating income.
arising from changes in circumstances are released through the
income statement under “Other operating income and
expenses”.
When accounting for business combinations, the Group may
record provisions for risks, litigations, etc. in the opening
balance sheet for a period of 12 months beyond the business
combination date. After the 12-month period, unused provisions
customer relationships and Trademarks, amortization of equity
based compensation and any other item that is deemed
infrequent, unusual or abnormal.
“Other operating income and expenses” also include major
litigations, and non-recurrent capital gains and losses on the
disposal of tangible and intangible assets, significant impairment
losses on assets other than financial assets, the amortization of
Equity-based compensation
directly in equity.
straight-line method, with the offsetting credit recognized
value of options after the grant date have no impact on the
initial valuation. The fair value of share options is recognized in
“other operating income and expense” on a straight-line basis
over the period during which those rights vest, using the
Stock options are granted to management and certain
employees at regular intervals. These equity-based
compensations are measured at fair value at the grant date
using the binomial option-pricing model. Changes in the fair
when stock options are exercised, based on the Group share
price at the date of exercise.
In some tax jurisdictions, Group entities receive a tax deduction
directly in the equity.
and are recorded in income tax provided that the amount of tax
deduction does not exceed the amount of the related cumulative
stock option expenses to date. The excess, if any, is recorded
received to date (being the future tax deduction allowed by local
tax authorities) and the current carrying amount of this
deduction, being nil by definition. Deferred tax assets are
estimated based on the Group’s share price at each closing date,
In those instances, a deferred tax asset is recorded for the
difference between the tax base of the employee services
subject to a five-year lock-up period restriction. Fair values of
such plans are measured taking into account:
Employee Share Purchase Plans offer employees the opportunity
to invest in Group’s shares at a discounted price. Shares are
quoted over the 20 trading days preceding the date of grant;
the exercise price based on the average opening share prices
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the 20 percent discount granted to employees;
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participant would pay for that share; and
the consideration of the five-year lock-up restriction to the
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extent it affects the price that a knowledgeable, willing market
the grant date: the date on which the plan and its term and
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conditions, including the exercise price, is announced to
employees.
Fair values of such plans are fully recognized in “Other operating
income and expenses” at the end of the subscription period.
The Group has also granted to management and certain
applicable. Free share plans result in the recognition of a
personnel expense spread over the vesting period.
employees free share plans. The fair value of those plans
corresponds to the value of the shares at the grant date and
takes into account employee turnover during the vesting period
as well as the value of the lock-up period restriction when
Corporate income tax
tax is valued using the enacted tax rate at the closing date that
will be in force when the temporary differences reverse.
differences occur between the tax base and the consolidated
base of assets and liabilities, using the liability method. Deferred
expenses. Deferred tax is calculated wherever temporary
The income tax charge includes current and deferred tax
those changes relate to items recognized in other comprehensive
income or in equity.
In case of a change in tax rate, the deferred tax assets and
liabilities are adjusted through the income statement except if
forecast information.
assets corresponding to temporary differences and tax losses
carried forward are recognized when they are considered to be
recoverable during their validity period, based on historical and
Deferred tax assets and liabilities are netted off at the taxable
entity level, when there is a legal right to offset. Deferred tax
Deferred tax liabilities for taxable temporary differences relating
to goodwill are recognized to the extent they do not arise from
the initial recognition of goodwill.
Deferred tax assets are tested for impairment at least annually
at the closing date based on December actuals, business plans
and impairment test data.