Areva - Reference Document 2016

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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

1.3.1. Presentation of the financial statements

out an analysis of the issues and potential impacts which Phase 1 “Classification andMeasurement” and Phase 2 “Impairment” of this new standard could have on assets earmarked for end-of-lifecycle operations. In fact, according to IFRS 9, the classification and measurement of financial assets will depend on the business model and contractual characteristics of the instruments. During their initial recognition, the financial assets will be classified at amortized cost in fair value through equity or in fair value through profit and loss. The application of these two criteria could lead to a different classification and measurement of assets earmarked for end-of-lifecycle operations than in IAS 39. In addition, Phase 2 of the standard, “Impairment”, introduces a new impairment model for credit risk based on expected losses. This model will require recognition of 12-month expected credit losses on purchased or originated instruments (resulting from the risk of defaults in the next 12months) at their initiation. Full lifetime expected credit losses (resulting from the risk of defaults over the remaining life of the instrument) will have to be recognized if the credit risk has increased significantly since initial recognition. The group is analyzing the potential impacts that application of this model would bring to its portfolio of earmarked assets. At this stage of the analysis, the principal impacts expected are an increase in the volatility of the statement of income, unless the group changes the terms for management of its earmarked funds. However, optimization of the yields of assets in the earmarked funds will remain the group’s priority, independently of the volatility that their recognition will bring about in the financial statements. p IFRS 15 “Revenue from Contracts with Customers” was published on May 28, 2014 and adopted by the European Union on September 22, 2016. The mandatory effective date is January 1, 2018. It will replace several standards and interpretations related to recognition of revenue, in particular IAS 18 “Revenue Recognition” and IAS 11 “Construction Contracts”. This standard rests on principles described in a five-stepmodel to determine when and in what amount income from ordinary operating activities should be recognized. The group has spent considerable effort on the training of its financial and operating teams to raise their awareness of the changes that the new standard could bring. The different types of contracts and identification of the issues that the standard might bring are being analyzed.

1.3.1.1. Operations sold, discontinued and held for sale Operations sold, discontinued and held for sale are presented in the financial statements in accordance with IFRS 5. Operations held for sale correspond to distinct, principal operating segments within the group for which management has initiated a disposal plan expected to lead to a loss of control and an active program to search for buyers, and whose sale is deemed highly probable within the 12 months following the end of the financial year (which may be extended in the event of particular circumstances). Discontinued operations correspond to operating segments whose operation was terminated at the date of closing of the financial year. The planned restructuring operations described in note 1.1 will have the effect of a loss of control of New NP, NewCo and other operations held for sale (in particular AREVA TA and renewable energies). The group believed that the conditions for classification as operations held for sale had been met, which had the following consequences, pursuant to the provisions of IFRS 5: ○ non-current assets such as goodwill, intangible assets, property, plant and equipment, and interests in joint ventures and associates follow specific rules imposed by IFRS 5. In particular: - amortization of amortizable assets ceases, - interests in joint ventures and associates cease to be consolidated by the equity method; ○ the other assets and liabilities continue to be valued according to the principles described in note 1.3. Thus determined, the group’s carrying amount of assets held for sale and related liabilities is compared with its fair value less disposal costs, giving rise if necessary to the recognition of impairment. p The assets and liabilities of operations held for sale are presented in their total amount under specific headings of the statement of financial position. The payables and debt of these operations towards the group’s other entities continue to be eliminated on consolidation. The comparative statement of financial position is not restated. p Net income from operations sold, discontinued and held for sale is presented under a specific heading of the statement of income, which includes the net income after tax of those operations until the date of their termination or disposal and the net gain after tax on the disposal itself. The statement of income from the previous year is presented for purposes of comparison and restated in identical fashion. This heading also includes the impact on the statement of income of post-disposal price adjustments and warranties granted to the buyer. The elimination of the income and expenses of these operations with respect to the group’s other entities aims to present the revenue earned with companies outside the group and reflects the manner in which the transactions will be continued. PRESENTATION VALUATION p Before proceeding to classification as “operations held for sale”, all of the assets and liabilities concerned were valued in accordance with the accounting principles historically applied by AREVA, described in note 1.3. p As from their date of classification as “operations held for sale”:

New standards and interpretations not yet adopted by the European Union

IFRS 16 “Leases”;

p

p IFRS 15 “Revenue from Contracts with Customers” - Clarifications; p Amendment to IAS 12 “Income Taxes”: recognition of deferred tax assets for unrealized losses on debt instruments measured at fair value; p Amendment to IAS 7 “Statement of Cash Flows”: reconciliation of net debt between opening and closing;

p Amendment to IFRS 4 “Insurance Contracts”;

p Amendment to IFRS 2 “Share-based Payment”: clarification on themeasurement and in the event of modification of a cash-settled or equity-settled plan.

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2016 AREVA REFERENCE DOCUMENT