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

d. Available-for-sale assets Assets available for sale are those non-derivative financial assets not entering any of the above categories, whether or not the Group intends to dispose of them. Changes in the fair value of these assets are recognized directly in shareholders’ equity with the exception of impairment losses and foreign exchange gains and losses which are recognized in profit or loss. The Group includes in this category equity investments in non consolidated entities over which it neither exercises control nor any significant influence. As such investments comprise shareholders’ equity instruments whose price is not quoted in an active market, and whose fair value cannot otherwise be reliably measured, they are maintained at cost less any impairment losses. Their recoverable amount is estimated based on criteria such as the Group share of an entity’s net assets and its outlook for growth and profitability. An impairment loss recognized in the income statement cannot subsequently be reversed.

The CIR research tax credit receivables were sold to Natixis Bank inǾ2014, 2015 and 2016, and to Crédit Agricole inǾ2017. The receivables sold inǾ2014 with respect to the 2011, 2012 and 2013 research tax credits amounted to €5,793Ǿthousand, €3,578Ǿthousand and €6,538Ǿthousand respectively. The total sold inǾ2015 is €7,573Ǿthousand with respect to the 2014 Research Tax Credit, the total sold inǾ2016 is €8,993Ǿthousand with respect to the 2015 Research Tax Credit and the total sold inǾ2017 is €9,068 with respect to the 2016 Research Tax Credit. The tax authorities reimbursed Natixis inǾ2015 for the amount of the 2011 Research Tax Credit, which was €5,793Ǿthousand, inǾ2016 for the amount of the CIRǾ2012 was €3,578 and inǾ2017 for the amount of the 2013 Research Tax Credit, which was €6,538Ǿthousand. Total receivables sold and not reimbursed by the tax authorities amounted to €16,566Ǿthousand for Natixis bank and €9,068 for Crédit Agricole. Deposits and other non-current financial assets consist mainly of guarantees given for the leased premises. Non-remunerated deposits are maintained at their nominal value, given that the effect of discounting is not significant. Guarantee for the lease of Tower W at La Défense and another for a loan explain most of the increase betweenǾ2015 and 2016.

7.2 Trade receivables

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros) Trade receivables

66,287

69,438

67,820

Accrued income

5,938

9,645

6,948

Accrued credit notes

-

-

-

Provision for doubtful debtors

-1,135 71,090

-874

-911

Total

78,209

73,856

Net trade receivables, expressed in terms of days of revenue, corresponded to 77Ǿdays of revenue at 31ǾDecember 2017 compared with 85Ǿdays at 31ǾDecember 2016. This ratio is

calculated by comparing “Net trade” receivables with the revenue generated during the year.

Accrued income mainly relates to fees for licenses and services, which are recognized according to the methods set out in NoteǾ4.1.

7.3 Other current receivables

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros)

Employees and social security

350

493

798

Tax receivables (other than corporate income tax)

2,641

3,508

6,201

Corporate income tax Other receivables Prepaid expenses Financial derivatives

12,272

11,790

10,590

8,659 7,093

2,345 6,837

-577 5,193

-

-

-

Total

31,016

24,973

22,204

Tax receivables of €2.6Ǿmillion relate mainly to deductible VAT.

140

AXWAY - 2017 REGISTRATION DOCUMENT

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