Saint Gobain - Registration document 2016

212 / 330

9 FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
212 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
Estimates and assumptions 1.2
estimates and assumptions that affect the amounts of assets
and liabilities reported in the balance sheet and the disclosure
compliance with IFRS requires management to make
through the use of these estimates and assumptions.
expenses during the period. These estimates and assumptions
are based on past experience and on various other factors
of contingent assets and liabilities in the notes to the financial
statements, as well as the reported amounts of income and
performance. Actual amounts may differ from those obtained
seen in the prevailing economic and financial environment,
which makes it difficult to predict future business
The preparation of consolidated financial statements in
The main estimates and assumptions described in these notes
concern the measurement of employee benefit obligations
measurement of financial instruments (Note 8 “Financing and
financial instruments”) and deferred taxes (Note 10 “Taxes”).
impairment tests (Note 5 “Property, plant and equipment and
intangible assets”), provisions for other liabilities and charges
and share-based payments (Note 4 “Employees, personnel
expenses and employee benefit obligations”), asset
(Note 7 “Other current and non-current liabilities and
provisions, contingent liabilities and litigation”), the
SCOPE OF CONSOLIDATION NOTE 2
Accounting principles related 2.1
to consolidation
The Group’s consolidated financial statements include the
accounts of Compagnie de Saint-Gobain and of all companies
significant influence.
controlled by the Group, as well as those of jointly controlled
companies and companies over which the Group exercises
Consolidation methods 2.1.1
Full consolidation a)
either directly or indirectly, are fully consolidated.
Companies over which the Group exercises exclusive control,
Joint arrangements b)
are accounted for by the equity method. Balance sheet and
income statement items relating to joint arrangements that
Joint arrangements that meet the definition of joint ventures
Group.
meet the definition of joint operations are consolidated
line-by-line based on the amount actually contributed by the
Equity accounting c)
method.
Companies over which the Group directly or indirectly
exercises significant influence are accounted for by the equity
statement. The income of equity-accounted companies whose
main business activity is in keeping with the Group’s core
The Group’s share of the income of equity-accounted
companies is shown on two separate lines of the income
companies” while the income of other equity-accounted
companies is shown under “Share in net income of non-core
operational business is presented in business income under
“Share in net income of core business equity-accounted
business equity-accounted companies” in pre-tax income.
Business combinations 2.1.2
Step acquisitions and partial disposals a)
a step acquisition (an acquisition in stages), as follows: (i) as a
disposal of the previously-held interest, with recognition of
When the Group acquires control of an entity in which it
already holds an equity interest, the transaction is treated as
recognition of the corresponding goodwill on the entire
interest (previous and new acquisitions).
any resulting gain or loss in the consolidated financial
statements, and (ii) as an acquisition of all of the shares, with
with recognition of any resulting gain or loss in the
consolidated financial statements, and (ii) as an acquisition of
the transaction is also treated as both a disposal and an
acquisition, as follows: (i) as a disposal of the entire interest,
a minority interest, measured at fair value.
When the Group disposes of a portion of an equity interest
leading to the loss of control (but retains a minority interest),
Potential voting rights and share purchase commitments b)
Potential voting rights conferred by call options on minority
interests are taken into account in determining whether the
control.
Group exclusively controls an entity only when the Group has
This approach gives rise to the recognition in the financial
statements of an investment-related liability, included within
companies, the Group considers the impact of cross put and
call options on minority interests in the companies concerned.
option, with a corresponding reduction in minority interests
other provisions and non-current liabilities, corresponding to
the present value of the estimated exercise price of the put
When calculating its percentage interest in controlled
recognized by adjusting equity.
and equity attributable to equity holders of the parent. Any
subsequent changes in the fair value of the liability are
Minority interests c)
shareholder category (single economic entity approach). As a
result, changes in minority interests with no loss of control
Under IFRS 10, minority interests (referred to as
“non-controlling interests” in IFRS 3R) are considered as a
continue to be recorded in the statement of changes in
equity and have no impact on the income statement or
balance sheet, except for changes in cash and cash
equivalents.
Non-current assets and liabilities held 2.1.3
for sale – Discontinued operations
Assets and liabilities that are immediately available for sale
and for which a sale is highly probable are classified as
accounted for as a disposal group, which also includes any
liabilities directly associated with those assets. The assets or
non-current assets and liabilities held for sale. When several
assets are held for sale in a single transaction, they are