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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
p
Net cash flows from operations sold, discontinued and held for sale are also
presented under a specific heading of the statement of cash flows, which includes
cash flows generated by those operations until the date of their termination or
disposal and the net cash flow after tax generated on the disposal itself. The
statement of cash flows of the previous year, presented for comparison, is restated
in identical fashion. This heading also includes the impact of post-disposal price
adjustments on the statement of cash flows and warranties granted to the buyer.
The cash flow from these operations with respect to the group’s other entities
continue to be eliminated in consolidation.
APPENDED INFORMATION
IFRS 5 contains specific provisions concerning assets which have their own
valuation methods.
p
For non-current assets (including those belonging to a group of assets held for
sale) falling within the scope of IFRS 5, the other standards do not apply unless
they contain provisions specifically concerning those assets.
p
For the other assets and liabilities included in a group of assets held for sale,
the other standards apply.
1.3.1.2. Presentation of the statement of financial position
The statement of financial position makes a distinction between current and non-
current assets and current and non-current liabilities, in accordance with IAS 1.
Current assets and liabilities are those which were held for sale or for use in
connection with the operating cycle, or which are expected to be sold or settled
within 12 months of the end of the period.
Financial liabilities are divided between current and non-current liabilities based on
their remaining maturity at year-end.
To simplify the presentation of the statement of financial position, AREVA presents
all headings relating to its end-of-lifecycle operations, as defined in note 13, on
separate lines under non-current assets and non-current liabilities, in their full
amount. Thus, provisions for end-of-lifecycle operations are presented as non-current
liabilities; the end-of-lifecycle assets corresponding to the share of third parties in
the funding of those operations are presented under non-current assets. Financial
assets earmarked to cover those operations are presented in a separate heading
under non-current assets, which includes all equities and shares of earmarked
equity mutual funds and bonds held in the portfolio, together with cash held on
a short-term basis.
Similarly, provisions for employee benefits are presented under non-current liabilities
in their full amount.
Deferred tax assets and liabilities are shown as non-current.
1.3.1.3. Presentation of the statement of income
In the absence of detailed guidance in IAS 1, the statement of income is presented in
accordance with recommendation 2013-03 of the Autorité des normes comptables
(French national accounting board).
p
Operating income is presented based on an analysis of expenses by function.
Operating expenses are split among the following categories:
○
cost of sales,
○
research and development expenses,
○
marketing and sales expenses,
○
general and administrative expenses,
○
other operating income, mainly comprising:
-
gains/losses on disposals of property, plant and equipment and intangible
assets,
-
income from the deconsolidation of subsidiaries (except when they are
qualified as discontinued operations in accordance with IFRS 5, in which
case they are presented on a separate line of the statement of income),
-
reversals of impairment of property, plant and equipment and intangible
assets,
○
other operating expenses, mainly comprising the following items:
-
costs of restructuring and early employee retirement plans,
-
goodwill impairment,
-
impairment of and losses on disposals of property, plant and equipment
and intangible assets,
-
losses from the deconsolidation of subsidiaries (except when they are
qualified as discontinued operations in accordance with IFRS 5).
AREVA presents the income resulting from the research tax credit program in France
as a reduction in research and development expenses and presents the income
from the competitiveness and employment tax credit program as a reduction in
payroll expenses in each expense category by function.
p
As indicated in note 1.3.2, AREVA presents the share in net income of joint
ventures and associates whose operations are an extension of the group’s
operations under a statement of income heading immediately below operating
income, and presents a new sub-total entitled “Operating income after share in
net income of joint ventures and associates”.
p
Net financial income comprises:
○
gross borrowing costs,
○
income from cash and cash equivalents,
○
other financial expenses, including in particular:
-
lasting impairment and gains or losses on disposals of available-for-sale
securities,
-
negative changes in value of securities held for trading,
-
unwinding of provisions for end-of-lifecycle operations and employee
benefits,
○
other financial income, including in particular:
-
dividends received and other income from financial assets other than cash
and cash equivalents,
-
gains on disposals of available-for-sale securities,
-
positive changes in value of securities held for trading,
-
unwinding of end-of-lifecycle assets (third-party share),
-
returns on retirement plan assets and other employee benefits.
1.3.1.4. Presentation of the statement of comprehensive
income
The statement of comprehensive income explains the transition from net income
to comprehensive income on a statement separate from the statement of income,
in accordance with the election made by AREVA to apply amended IAS 1.
It presents “Other items of comprehensive income” as either recyclable or non-
recyclable to the statement of income.
p
Items recyclable to the income statement include:
○
currency translation adjustments of consolidated entities,
○
changes in the value of available-for-sale financial assets, and
○
changes in the value of cash flow hedging instruments.
2016 AREVA
REFERENCE DOCUMENT
189