Assystem - 2018 Register document





Reporting entity The Assystem Group (hereinafter also referred to as the “Group”) is an international leader in the field of engineering. The Group’s parent company is Assystem SA (hereinafter also referred to as the “Company”) – a French public limited company (société anonyme) governed by a Board of Directors, whose registered office is located at Tour Égée, 9-11 allée de l’Arche, 92400 Courbevoie, France. The consolidated financial statements for the year ended 31 December 2018, together with the accompanying notes, were approved by the Company’s Board of Directors on 13 March 2019. However, these financial statements will only be considered definitive once they have been approved by the Company’s shareholders at the Annual General Meeting scheduled to be held on 16 May 2019. The consolidated financial statements reflect the accounting position of Assystem and its subsidiaries. They are presented in millions of euros, rounded to the nearest hundred thousand. Basis of preparation In compliance with Regulation 1606/2002/EC of the European Parliament and Council dated 19 July 2002, the consolidated financial statements of the Assystem Group for the year ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards (IFRSs) and related interpretations as adopted by the European Union at that date. These financial statements present two years of data. IFRSs as adopted by the European Union differ in certain respects from IFRSs as issued by the IASB. The Group nevertheless ensured that the financial information for the reported periods would not have been substantially different had it applied IFRSs as issued by the IASB. NEW STANDARDS, AMENDMENTS TO EXISTING STANDARDS AND INTERPRETATIONS WHOSE APPLICATION WAS MANDATORY FROM 1 JANUARY 2018 The following new standards, amendments to existing standards and interpretations were applicable by the Group as from 1 January 2018: IFRS 9, “Financial Instruments” IFRS 9 replaces the provisions of IAS 39 (which the Group applied until 31 December 2017) that relate to the recognition, classification, measurement and impairment of financial assets and financial liabilities. The Group has applied IFRS 9 retrospectively, and its application of this new standard did not impact its consolidated financial statements. The Group’s analysis of this new standard is set out below. Classification and measurement of assets: The Group’s non-current financial assets primarily correspond to (i) Assystem SA’s ownership interest in Framatome and (ii) the Expleo Group convertible bonds taken up by Assystem SA (amounting to €124.3 million and €102.2 million respectively at 31 December 2018). These two assets are now classified as “Financial assets at fair value through profit or loss”.

Impairment of financial assets: IFRS 9 introduces a new forward-looking impairment model for financial assets based on expected credit losses. The analysis carried out by the Group focused on trade receivables, for which impairment is now recognised based on the expected credit losses over the expected lifetime of the receivables. The first-time application of IFRS 9 at 1 January 2018 did not result in any significant change in the impairment recognised for these assets, as the Group’s clients are mainly major international players in their industries, which significantly reduces the risk of credit losses. Changes in debt terms: The new provisions introduced in IFRS 9 relating to changes in debt terms without derecognition, which are applicable retrospectively, did not impact the Group. Hedging instruments: The provisions of IFRS 9 relating to hedge accounting are applicable on a prospective basis, except for the impact of the cost of hedging, which has to be restated retrospectively. Based on its analysis, the Group did not have to change the accounting method for its hedging instruments that were already in place. At 31 December 2018, the value of these hedging instruments was not material. IFRS 15, “Revenue from Contracts with Customers” IFRS 15 constitutes the new framework for revenue recognition. It replaces IAS 11, “Construction Contracts” and IAS 18, “Revenue”, and the related interpretations, effective from 1 January 2018. The Group adopted IFRS 15 using the modified retrospective approach and therefore has not restated its comparative information for 2017. Prior to its first-time application of this standard, the Group carried out an analysis of its client relations, focusing on the following: ● the identification of contracts, particularly in cases where framework agreements or groups of contracts are in place; ● the identification of the various performance obligations in its contracts; ● the recognition and measurement of variable consideration, notably penalties and volume discounts; ● the timing of revenue recognition, including the justification of using the percentage of completion method for recognising revenue on fixed-price contracts; ● the agent/principal distinction, notably in relation to consortia and sub-contracting arrangements. The Group’s analysis of IFRS 15 and applying the provisions of this new standard to its various type of existing contracts did not reveal any material impacts on Assystem’s revenue recognition. Consequently, the Group has not presented any impacts relating to its transition to IFRS 15 on 1 January 2018. Other standards, amendments and interpretations ● amendments to IAS 40, “Transfers of Investment Property”;


● annual improvements to IFRS s , “2014-2016 Cycle”;

● IFRIC 22, “Foreign Currency Transactions and Advance Consideration”;




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