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20.4 Notes to the annual financial statements
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
20.4.2.11.
TAX INFORMATION
As provided in article 223A of the French Tax Code, AREVA SA opted to be solely
responsible for income tax due on the combined income of the group consisting of
AREVA SA and the subsidiaries in which it holds at least 95% of the share capital.
This regime remains in effect for the year ended December 31, 2016.
The relations between AREVA SA and its integrated subsidiaries are governed by a
tax integration agreement based on the principle of tax neutrality. This agreement
defines in particular the conditions for distributing tax liabilities among integrated
companies and the rules applicable upon termination of the integration.
As provided in article 39–1-2 of the French Tax Code, depreciation is deductible
for tax purposes only if properly recognized in the company’s accounting records.
To encourage capital spending, tax law may allow companies to recognize
amortization that would not otherwise be required under reporting standards. Due to
discrepancies between tax and accounting rules, AREVA SA recognizes accelerated
depreciation in a manner that is consistent with accounting rules providing for
minimum cumulative straight-line amortization.
20.4.3.
EVENTS SUBSEQUENT TO YEAR-END CLOSING
On January 5, 2017, AREVA SA’s interest in Adwen was sold. Gamesa is taking
over AREVA SA’s offshore wind energy operations. AREVA’s off-balance-she
et commitments are taken over by Gamesa. AREVA retains the obligations for
indemnification according to the new terms.
On January 10, 2017, the European Commission gave its consent to the French
State to participate in the capital increases of AREVA SA and of NewAREVAHolding
(see note 1.1).
On February 3, 2017, the CombinedGeneral Meeting of Shareholders approved the
capital increase reserved for the French State in the total amount of 2 billion euros.
In addition, the par value of the AREVA SA share was reduced from 3.80 euros
to 0.25 euros.
On February 21, 2017, in accordance with the terms of the share purchase
agreement signed on January 5, 2017, Adwen sent a notice to AREVA SA and
Gamesa following the identification of quality problems on the fleet of wind
turbines installed offshore. More in-depth, technical counter-examinations will be
necessary in the coming months to determine the financial impact, the division of
responsibilities, and the solutions. In the absence of such information, no additional
provision was recognized at December 31, 2016. Based on Adwen’s estimates,
which have not been verified by AREVA SA at this stage, the maximum exposure
would be 70 million euros and would fall within the cap of guarantees given to
Adwen, provided for that purpose by the share purchase agreement.
2016 AREVA
REFERENCE DOCUMENT
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