Assystem - 2018 Register document

BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

due at 31 December 2017 (recognised under financial expenses). At 31 December 2018 the provision therefore totalled €16.4 million, including €13.5 million for the reassessed amount and €2.4 million for potential late payment penalties. A further €0.3 million was recognised under financial expenses in the 2018 consolidated financial statements for additional potential late payment penalties. Long-term provisions for employee-related risks and tax risks mainly comprise the provision set aside for the above-described tax audit in France. The year-on-year movements in these provisions are described in Note 5.6 – Non-recurring income and expenses.

the full amount of the risk following its receipt at end-2017 of the payment notice for the reassessed amount. Consequently, since 2017 the reassessed amount and potential late payment penalties have been fully provisioned for in Assystem’s consolidated financial statements, it being specified that at 31 December 2016 Assystem France transferred this risk to its parent company, Assystem SA, in return for a compensation payment. The provision expense recognised in Assystem’s 2017 consolidated financial statements totalled €8.8 million, breaking down as €6.7 million for the reassessed amount (recorded under non-recurring expenses) and €2.1 million for the late payment penalties potentially

LIABILITIES RELATED TO SHARE ACQUISITIONS (CURRENT AND NON-CURRENT) AND OTHER NON-CURRENT LIABILITIES

NOTE 10

In some cases, the Group grants put options to minority shareholders of its subsidiaries in relation to their non-controlling interests held in those subsidiaries. The exercise price of these options may be fixed or based on a pre-determined formula. Where such put options are granted, the Group recognises a related financial liability. This liability is initially recognised at the present value of the exercise price, and at the end of subsequent reporting periods it is measured by reference to the fair value of the shares that would potentially have to be purchased if the exercise price is based on fair value. Subsequent changes in the fair value of the put options are recognised in financial income or expenses. The Group also recognises a non-current liability for the discounted amounts relating to commitments to pay dividends to third-party shareholders.

5

The amount recorded in the consolidated financial statements at 31 December 2018 for put options granted to non-controlling interests totalled €5.7 million, all of which was recognised in non-current liabilities related to share acquisitions (€9.1 million at 31 December 2017). The amounts recognised as liabilities for put options chiefly relate to the following acquisitions: ● Envy – €4.6 million. This amount was €0.4 million lower than at 31 December 2017 as the Group revised the assumptions used for calculating the liability;

● Assystem Care Holding – €1.1 million (recognised in current liabilities). In 2018 the Group settled €2.5 million worth of this liability and revised the assumptions used for its calculation, which led to a €0.5 million decrease that was recognised as a reduction of goodwill (see Note 3.2 – Business combinations). The discounted amounts relating to commitments to pay dividends to third-party shareholders are recorded under “Other non-current liabilities” and concerned Envy (long-term portion: €1.3 million; short-term portion €0.5 million). Movements in liabilities related to the non-controlling interests in Envy are described in Note 8.5 – Financial income and expenses.

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ASSYSTEM

REGISTRATION DOCUMENT 2018

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