Assystem - Registration Document 2016

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

6.3 Investment property

IAS 40 defines investment property as property held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services or for administrative purposes. Investment property is measured at fair value and any gains or losses arising from changes in fair value are recognised directly in the income statement.

as well as a return-based approach. Major market trends were also taken into consideration. At 31 December 2016, the value of the investment property was €1.4 million. There have been no significant changes in the substance of the lease contract on the property since the last valuation was performed.

The building recognised under “Investment property” at 31 December 2016 corresponds to a fully-owned property located in Equeurdreville, France, which is measured at fair value. It was valued in February 2014 by an independent valuer who has no legal ties with the Group. In compliance with IFRS, the valuation method used was based on analysing recent transactions involving similar assets in the same market,

6.4 Non-current financial assets

In accordance with IAS 32 and 39, financial assets are measured according to the asset category to which they belong. Regular purchases and sales of financial assets are recognised on the trade date, corresponding to the date on which the Group commits to purchase or sell the asset. Financial assets are initially recognised at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs. Transaction costs on financial assets at fair value through profit or loss are expensed as incurred. See Note 8.3 for a description of derivative financial instruments.

AVAILABLE-FOR-SALE (AFS) FINANCIAL ASSETS This category includes shares in non-consolidated companies. They are measured at fair value, and any gains or losses arising from changes in fair value – other than impairment losses – are recognised in other comprehensive income until the asset is derecognised. Impairment losses are recognised in the income statement. For listed shares, fair value corresponds to the market price. Shares whose fair value cannot be measured reliably are recognised at historical cost. At each reporting date, the fair value of AFS financial assets is calculated and recorded in the statement of financial position. An impairment loss is recognised in the income statement if there is an objective indication that the asset is impaired, such as a significant or prolonged decline in value. Impairment losses recognised against AFS financial assets may only be reversed when the assets are derecognised.

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Following Assystem’s sale of its shares in Alyotec and ST Group, the gross value of available-for-sale financial assets was €1.4 million at 31 December 2016 and accumulated impairment losses recognised against these assets totalled €1.2 million.

OTHER NON-CURRENT FINANCIAL ASSETS The Group’s other non-current financial assets include loans and receivables, which are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They typically arise when an entity provides money, goods or services directly to a debtor with no intention of trading the receivable. They are included in current assets, except for their long-term portion. They are initially recognised at fair value and subsequently measured at amortised cost. An impairment loss is recognised for any difference between the recoverable amount of the asset (the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate) and its amortised cost at the reporting date. These impairment losses are recognised in the income statement and can be reversed in a subsequent period in the event of a favourable change in circumstances.

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ASSYSTEM

REGISTRATION DOCUMENT 2016