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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
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Registration Document 2016 — Capgemini
Consolidated income statement
Income and expenses are presented in the Consolidated
down into the cost of services rendered (corresponding to
Income Statement by function. Operating expenses are broken
expenses, and general and administrative expenses.
costs incurred for the execution of client projects), selling
one of the main Group business performance indicators.
which are deducted from revenues to obtain operating margin *,
These three captions represent ordinary operating expenses
Operating profit is obtained by deducting other operating
income and expenses from operating margin.
Other operating income and expenses include amortization of
conditions of presence in companies acquired and the effects
acquired by the Group, including earn-outs relating to
negative goodwill, capital gains or losses on disposals of
revenues and expenses, notably impairment of goodwill,
incurred under a detailed formal plan approved by the Group’s
consolidated companies or businesses, restructuring costs
charge resulting from the deferred recognition of the fair value
intangible assets recognized in business combinations, the
contributions and employer contributions), and non-recurring
of shares granted to employees (including social security
management, the cost of acquiring and integrating companies
pension plans.
of curtailments, settlements and transfers of defined benefit
obtained by taking into account the following items:
Profit for the year attributable to owners of the Company is then
calculated using the effective interest rate, less income from
net finance costs, including net interest on borrowings
◗
cash, cash equivalents and cash management assets;
correspond to the impact of remeasuring financial instruments
disposal gains and losses and the impairment of investments
to fair value when these relate to items of a financial nature,
other financial income and expense, which primarily
◗
the effective interest rate;
benefit pension plans, exchange gains and losses on financial
in non-consolidated companies, net interest costs on defined
miscellaneous financial assets and liabilities calculated using
items, and other financial income and expense on
current and deferred income tax expense;
share of profit of associates;
◗
share of non-controlling interests.
◗
Operating margin, an alternative performance measure monitored by the Group, is
(*)
defined in Note 3, Alternative performance measures.
Revenues
Note 6
the nature of the services rendered:
The method for recognizing revenues and costs depends on
Time and materials contracts
a.
Revenues and cost of services are recognized as services are
rendered.
Long-term fixed-price contracts
b.
contracts, are recognized using the “percentage-of-completion”
Revenues, including systems development and integration
method. Costs are recognized as they are incurred.
Outsourcing contracts
c.
Revenues from outsourcing agreements are recognized over
the term of the contract as the services are rendered.
outsourcing contracts (transition and/or transformation costs)
However, a portion of costs incurred in the initial phase of
relate to future activity on the contract and/or will generate
may be deferred when they are specific to a given contract,
The related costs are recognized as they are incurred.
allocated to work-in-progress and any reimbursement by the
future economic benefits, and are recoverable. These costs are
client is recorded as a deduction from the costs incurred.
revenues, a loss to completion is recognized in the amount of
When the projected cost of the contract exceeds contract
the difference.
and notes receivable” when invoiced to customers and
Consolidated Statement of Financial Position under “Accounts
from customers and billed in advance are included in current
“Accrued income” when they are not yet invoiced. Advances
Revenues receivable from these contracts are recognized in the
liabilities.
Group scope and exchange rates and 7.9% at constant exchange rates.
Group revenues total €12,539 million (€11,915 million in 2015), representing a year-on-year increase of 5.2%, based on the year-end