AXWAY_REGISTRATION_DOCUMENT_2017

AXWAY GROUP AND ITS BUSINESS ACTIVITIES

CORPORATE RESPONSIBILITY

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

Notes to the financial statements

NoteǾ7 Components of working capital requirements and other financial assets and liabilities 7.1 Non-current financial assets The Group classifies its financial assets into the following categories: held to maturity are otherwise measured, after initial recognition, at amortized cost. The Group currently holds no assets classified within this category. ● assets measured at fair value through the income statement;

● assets held to maturity; ● loans and receivables;Ǿand ● available-for-sale assets.

c. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They comprise the financial assets arising when the Group remits funds, or provides goods and services, to an individual or entity. Loans and receivables are initially recognized at fair value then subsequently measured at amortized cost using the effective interest rate method. The Group has identified within this category: ● non-current financial assets comprising long-term loans and receivables associated with non-consolidated equity investments as well as guarantee deposits for leased premises. Impairment losses are recognized for receivables associated with non-consolidated equity investments whenever their estimated recoverable amounts are lower than their net carrying amounts;Ǿand ● current trade receivables. Current trade receivables are initially measured at the nominal values invoiced which generally equate to the fair value of the consideration to be received. The impact of discounting would be negligible given that the Group’s average credit period is in sixty days. If necessary, impairment losses are recognized on an individual basis reflecting any problems of recovery. The Group’s non-current financial assets consist of loans and receivables.

Classification depends on the purposes for which financial assets were acquired. Management decides on the appropriate classification at the time of initial recognition and performs a reassessment at each interim or annual reporting date. Financial assets are carried in the balance sheet at their initial fair value. Their subsequent measurement corresponds, depending on their classification, either to fair value or to amortized cost. a. Assets measured at fair value through the income statement This category comprises financial derivatives, financial assets held for trading ( i.e. acquired with a view to resale in the near term) and those designated upon initial recognition as at fair value through the income statement. Changes in the fair value of assets of this category are recognized in the income statement. b. Assets held to maturity Held to maturity investments are non-derivative financial assets with fixed or determinable payments that the Group has the intention and ability to hold to maturity. If any such asset is disposed of prior to maturity all other assets of the category must obligatorily be reclassified as available for sale. Assets

4

31/12/2017

31/12/2016

31/12/2015

Loans and receivables

3,288

3,235

1,780

Derivatives

-

-

-

Total

3,288

3,235

1,780

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros)

Tax receivables (other than corporate income tax)

-

-

-

Loans

0

0

0

Deposits and other non-current financial assets Provisions for loans, deposits and other non-current financial bassets Loans, deposits and other non-current financial assets – netǾvalue

3,288

3,235

1,781

-0

-0

-1

3,288 3,288

3,235 3,235

1,780 1,780

Total

139

AXWAY - 2017 REGISTRATION DOCUMENT