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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
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Registration Document 2016 — Capgemini
This goodwill was tested for impairment at December 31, 2016 in
line with the Group valuation procedure for such assets.
In 2016, the Group used estimates produced by 11 financial
analysts, most of whom were included in the 2015 group of
financial analysts selected for the calculation of long-term growth
rates and discount rates. Long-term growth and discount rates
used for Brazil and India have been calculated separately, taking
account of the specific characteristics of these countries.
Value in use is measured using the discounted future cash flow
method and based on the following main assumptions:
based on data taken from the three-year strategic plan process,
with extrapolation of this data for the remaining period;
number of years over which cash flows are estimated: five years,
◗
long-term growth rate used to extrapolate to perpetuity final year
◗
estimated cash flows: 7.0% for Brazil (8% in 2015), 4% for India
(3.8% in 2015) and 2.4% for the rest of the Group (stable on
2015);
discount rate: 8.4% for North America (9.0% in 2015), 14.2% for
◗
Brazil (14.7% in 2015), 14.9% for India (13.4% in 2015), 7.9%
for the United Kingdom (8.7% in 2015) and 8.4% for the rest of
the Group (8.5% in 2015).
a result of these impairment tests.
No impairment losses were recognized at December 31, 2016 as
Furthermore, an analysis of the calculation’s sensitivity to a
combined change in the following key assumptions:
+/-2 points in the revenue growth rate for the first five years;
◗
+/-1 point in the operating margin rate* for the first five years;
(*)
◗
+/-0.5 points in the discount rate;
◗
+/-0.5 points in the long-term growth rate.
◗
carrying amount is considered immaterial. This cash-generating
unit remains sensitive to the environment and economic climate in
Brazil.
did not identify any recoverable amounts below the carrying
amount for any cash-generating units, with the exception of the
Latin America cash-generating unit, where the difference between
the recoverable amount resulting from this test and the net
Deferred taxes
Note 16
Deferred taxes are:
recorded to take account of temporary differences between
◗
the carrying amounts of certain assets and liabilities and their
tax basis;
recognized in income or expenses in the Income Statement,
◗
in income and expense recognized in equity, or directly in
equity in the period, depending on the underlying to which
they relate;
measured taking account of known changes in tax rates (and
◗
tax regulations) enacted or substantively enacted at the
year-end. Adjustments for changes in tax rates to deferred
taxes previously recognized in the Income Statement, in
income and expense recognized in equity or directly in equity
are recognized in the Income Statement, in income and
expense recognized in equity or directly in equity, respectively,
in the period in which these changes become effective.
assets is reviewed at each period end. This amount is reduced
to the extent that it is no longer probable that additional taxable
Deferred tax assets are recognized when it is probable that
taxable profits will be available against which the recognized tax
asset can be utilized. The carrying amount of deferred tax
deferred tax assets to be utilized. Conversely, the carrying
amount of deferred tax assets will be increased when it
becomes probable that future taxable profit will be available in
the long-term against which to offset tax losses not yet
recognized. The probability of recovering deferred tax assets is
primarily assessed based on a 10-year plan, taking account of
the probability of realization of future taxable profits.
profit will be available against which to offset all or part of the
if, the subsidiaries have a legally enforceable right to offset
The main deferred tax assets and liabilities are offset if, and only
current tax assets against current tax liabilities, and when the
deferred taxes relate to income taxes levied by the same
taxation authority.
Operating margin, an alternative performance measure monitored by the Group, is defined in Note 3, Alternative performance measures.
(*)