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20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
Concerning the quality subjects mentioned previously
For all of the quality subjects, AREVA has not constituted a specific provision
associated with potential liability-related actions. In fact, as of this date, AREVA is
not aware of customer or third-party claims for any of the quality subjects mentioned
above.
However, the group cannot exclude the possibility of claims from third parties. In
early February 2017, EDF notified AREVA in particular that the company reserves
the right to ask for redress and to take any legal action as the result of AREVA NP
breaches of its contractual, legal or regulatory obligations or related to the industrial
code. Independently of these potential claims, AREVA continues discussions with
customers, the safety authorities and the certifying bodies in order to deal with
these subjects as quickly as possible for the benefit of the safety of the facilities.
For more information on disputes, see note 34.
1.2. ESTIMATES AND JUDGMENTS
To prepare its financial statements, AREVA must make estimates, assumptions
and judgments impacting the carrying amount of certain assets and liabilities,
income and expense items, or information provided in some notes to the financial
statements. AREVA updates its estimates and judgments on a regular basis to
reflect past experience and other factors deemed pertinent, based on economic
conditions. As a function of changes in these assumptions or in circumstances,
the amounts appearing in its future financial statements may differ from current
estimates, particularly in the following areas:
p
the highly probable nature of the loss of control of assets and operations classified
in the “held for sale” category, in accordance with IFRS 5 (see notes 1.3.1.1 and
3), and estimates relative to the net income from sales of assets and operations
classified as “held for sale” (see note 3);
p
operating margins on contracts recognized according to the percentage of
completion method (see notes 1.3.7 and 24), which are estimated by the project
teams and reviewed by management following the group’s procedures;
p
cash flow forecasts and the discount and growth rates used for impairment tests
for goodwill and other plant, property and equipment and intangible assets (see
notes 1.3.9, 10, 11 and 12);
p
all assumptions used to assess the value of pension commitments and other
employee benefits, including future payroll escalation and discount rates,
retirement age and employee turnover (see notes 1.3.15 and 23);
p
all assumptions used to assess the value of provisions for end-of-lifecycle
operations and the assets corresponding to the third-party share, in particular:
○
the estimated costs of those operations,
○
the inflation and discount rates,
○
the schedule of future disbursements,
○
the operating period of the facilities (see notes 1.3.17 and 13),
○
the scenario chosen with regard to knowledge of the initial condition of the
facilities, of the target final condition, and of the waste treatment and removal
methods,
○
the procedures for final shut-down;
p
the assumptions used to assess provisions for contract completion, in particular
for waste treatment methods that do not presently exist: the estimated costs of
those operations, the schedule of future disbursements, and the inflation and
discount rates;
p
the assumptions used to value provisions for restructuring and provisions for
voluntary departure plans (see notes 1.3.16 and 24);
p
estimates and judgments regarding the outcome of disputes in progress and,
more generally, estimates regarding all of the provisions and contingent liabilities
of the AREVA group (see notes 1.3.16, 24 and 34);
p
estimates and judgments relative to the recoverability of accounts receivable
from the group’s customers and other accounts receivable (see notes 1.3.11
and 1.3.12.3);
p
estimates and judgments regarding the material or durable nature of the
impairment of available-for-sale financial assets (see notes 1.3.12, 13 and 15);
p
estimates of future taxable income used to recognize deferred tax assets (see
notes 1.3.22 and 9);
p
the share in equity and net income of joint ventures and associates that had not
yet reported their year-end financial statements at the date of year-end closing
of AREVA’s financial statements.
1.3. ACCOUNTING PRINCIPLES
PursuanttoEuropeanRegulation1606/2002ofJuly19,2002,AREVA’sconsolidated
financial statements were prepared in accordance with International Financial
Reporting Standards (IFRS) adopted by the European Union at December 31,
2016. They include the International Accounting Standards (IAS), the IFRS and
the interpretations issued by the IFRS Interpretations Committee (IFRS-IC) and by
the former Standing Interpretation Committee (SIC). These financial statements
are also consistent with IFRS standards drawn up by the International Accounting
Standards Board (IASB), insofar as the mandatory adoption date of the standards
and amendments published by the IASB and not yet adopted by the European
Union at December 31, 2016 is later than that date.
Mandatory effective date of January 1, 2016 for new
standards and interpretations
p
Amendments resulting from annual improvement processes for the 2010-2012
period;
p
Amendments resulting from annual improvement processes for the 2012-2014
period;
p
Amendment to IAS 19 “Employee Benefits: employee contributions to defined
benefit plans”;
p
Amendment to IFRS 11 “Acquisition of an interest in joint operations”;
p
Amendments to IAS 16 and IAS 38 “Acceptable methods of depreciation and
amortization”;
p
Amendments to IFRS 10, IFRS 12 and IAS 28 “Investment Entities”;
p
Amendment to IAS 1, first part of the “Disclosure Initiative”.
The mandatory effective date of January 1, 2016 of the amendments has no
significant impact on the group’s consolidated financial statements.
New standards and interpretations which do not yet have a
mandatory effective date
New standards and interpretations adopted by the European
Union which do not yet have a mandatory effective date
p
IFRS 9 “Financial Instruments” was published on July 24, 2014 and adopted by
the European Union on November 22, 2016. It will be mandatory for financial
years beginning January 1, 2018 and will replace IAS 39 “Financial Instruments:
Recognition and Measurement”. It defines new principles for the classification
andmeasurement of financial instruments, the impairment of financial assets due
to credit risk, and general hedge (or micro-hedge) accounting. The group carried
2016 AREVA
REFERENCE DOCUMENT
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