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FINANCIAL STATEMENTS
3
Statutory financial statements
NOTE 2
Accounting rules and methods
The statutory financial statements are presented in compliance
with the legal and regulatory provisions currently in force in
France and recommended in the French chart of accounts.
The presentation of the income statement is based on Opinion
No. 30 of 13 February 1987 of the National Accounting Board,
which proposes a structure for the accounts that is better suited
to the nature of the Company’s activities.
2.1
NON-CURRENT FINANCIAL ASSETS
(PORTFOLIO INVESTMENTS HELD
AS NON-CURRENT ASSETS AND
EQUITY INVESTMENTS)
2.1.1 Portfolio investments held as non-current
assets
Portfolio investments held as non-current assets are the
investmentsheld in theApaxFranceVIII-B, ApaxVIII LP, ApiaVista,
Phénix and Apax France IX-B funds. A provision for impairment
was recognised as of 31 December 2016 for theApia Vista private
equity fund (€7k) and for Apax France IX-B (€4,050k).
2.1.2 Accounting method for tracking
and writing down equity investments
According to the accounting regulations for commercial
companies, equity investments are recognised at their acquisition
cost. Theymay give rise to impairment, but not to revaluation. The
manager conducts a reviewof the listed and unlisted securities at
the end of each half-yearly and annual accounting period. When
the estimated value is less than the cost, a provision is recognised
in the amount of the difference.
The provision for impairment of equity investments and related
receivables amounted to €21.9m as of 31 December 2016.
Exits are calculated on a “first-in, first-out” basis.
Receivables in foreign currencies on foreign companies are valued
at the exchange rate on the balance sheet date. A provision for
risks and contingencies is recognised in the event of any decline in
the currency concerned in relation to the euro. This rule is applied
to both the book value and the estimated value.
2.1.3 Calculation method for estimated value
CATEGORY 1 SHARES
Companieswhose shares are tradedonanactivemarket (“listed”).
The shares of listed companies are valued at the last stockmarket
price.
CATEGORY 2 SHARES
Companies whose shares are not traded on an active market
(“unlisted”), but are valued based on directly or indirectly
observabledata. Observabledata arepreparedusingmarket data,
such as information published on actual events or transactions,
and reflect assumptions that market participants would use to
determine the price of an asset or liability.
An adjustment to level 2 data that has a significant impact on
fair value may cause a reclassification to level 3 if it makes use of
unobservable data.
CATEGORY 3 SHARES
Companies whose shares are not traded on an active market
(“unlisted”), and are valued based on unobservable data.
2.2 OTHER RECEIVABLES
This account corresponds to interest accrued on equity
investments.
The Company has determined that accrued interest is generally
included in the acquisition price paid by third parties and is not
paid by the debtor company. Consequently, it will henceforth be
included in the valuation of the companies. For this reason, it is
initially recognised as accrued income, then fully written down.
2.3 OTHER NON-CURRENT FINANCIAL
ASSETS
The Company has given a mandate to Oddo to trade shares on
its behalf on the Paris market (Eurolist B by Euronext) in order to
ensure secondary market activity and liquidity in Altamir shares.
As of 31 December 2016, the non-current financial assets account
included 16,632 shares with a value of €205k and €514k in cash
and cash equivalents.
No provision was recognised as of 31 December 2016.
The account also included 12,164 Class B shares repurchased by
Altamir in 2015 for €122k (par value of €10 per share).
In addition, the account included a €63k provision paid in relation
to an ongoing legal proceeding.
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REGISTRATION DOCUMENT
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ALTAMIR 2016