AXWAY_REGISTRATION_DOCUMENT_2017

AXWAY GROUP AND ITS BUSINESS ACTIVITIES Notes to the financial statements

CORPORATE RESPONSIBILITY

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

c. Standards and interpretations published by the IASB in the process of adoption by the European Union and applicable in advance at 31bDecember 2017 ● Amendments to IFRSǾ2 Classification and Measurement of Share-based Payment Transactions. ● Annual improvements Annual Improvements to IFRS Standards 2014-2016 Cycle. ● Amendments to IASǾ40 Transfers of investment properties. ● Amendments to IFRSǾ9 Prepayment Features with Negative Compensation ● Amendments to IASǾ28 Long-term interests in associates and joint ventures. ● IFRICǾ 22 Foreign Currency Transactions and Advance Consideration. ● IFRICǾ23 Uncertainty over Income Tax Treatments. The Group has chosen not to apply these standards and interpretations in advance. d. Standards and interpretations published by the IASB but not yet adopted by the European Union and for which early application was not authorized at 31bDecember 2017 The Group does not apply them. These primarily relate to: ● annual improvements “Annual Improvements to IFRS Standards 2015-2017 Cycle”; ● amendments to IFRSǾ10 and IASǾ28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture; With regard to the presentation of the consolidated financial statements, Axway Software applies Recommendation 2009- R.03, dated 2ǾJuly 2009, of the Conseil National de la Comptabilité on the format of the income statement, the statement of cash flows and the statement of changes in equity. However, the format of the income statement as presented in previous years has been altered to improve the presentation of the Company’s performance. This relates particularly to NoteǾ2 Methods and scope of consolidation 2.1 Consolidation method ● The companies over which Axway Software has full control have been fully consolidated. The Group is deemed to control an entity when the following conditions are met: ● the Group has authority over the entity (the ability to manage its relevant business operations, i.e. those that ● Axway Software is the consolidating company. ● IFRSǾ14 Regulatory Deferral Account; ● IFRSǾ17 Insurance Contracts. e. Format of the financial statements

a new line item Profit (loss) from operations, which is now positioned before Profit from recurring operations, an indicator used internally by the Management to assess the Company’s performance. This indicator corresponds to Profit (loss) from continuing operations before expenses related to the cost of services rendered by beneficiaries of share subscription options and before amortization of the intangible assets concerned. 1.3 Significant estimates and accounting judgments The preparation of financial statements implies the use of estimates and assumptions in measuring certain consolidated balance sheet assets and liabilities as well as certain income statement items. The Management is also required to exercise judgment in the application of the Group’s accounting policies. Such estimates and judgments, which are continually updated, are based both on historical information and on reasonable anticipation of future events according to the circumstances. However, given the uncertainty implicit in assumptions as to future events, the related accounting estimates may differ from the actual results. The main assumptions and accounting estimates liable to leave scope for material adjustments to the carrying amount of assets and liabilities in subsequent periods are as follows: ● the measurement of goodwill (see NotesǾ8.1 and 8.2); ● the measurement of retirement benefit commitments (see NoteǾ5.3); ● the measurement of deferred tax assets (see NoteǾ6.3); ● the measurement of provisions (see NotesǾ5.3 andǾ9). b. Significant judgments in the application ofbaccounting policies With the exception of those policies requiring accounting estimates, no judgment exercised by Management has had a material impact on the amounts recognized in the financial statements. ● the recognition of income (see NoteǾ4.1); a. Significant assumptions and accounting estimates

have a significant impact on the entity’s profitability), through holding voting rights or other rights;Ǿand ● the Group is exposed to or is entitled to variable returns due to its ties with the entity;Ǿand ● the Group has the ability to exercise its authority over the entity in such a way as to affect the amount of the returns it obtains from it. ● Axway Software does not exert significant influence or joint control over any entity.

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AXWAY - 2017 REGISTRATION DOCUMENT

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