Assystem - Registration Document 2016

6

ÉTATS FINANCIERS

PARENT COMPANY FINANCIAL STATEMENTS

Transaction costs on acquisitions of shares in subsidiaries and affiliates

Depreciation and amortisation is determined on a straight-line basis over the estimated useful lives of the assets concerned as follows:

Software

1 to 5 years

These costs are expensed as incurred. For tax purposes, they are added back in the year in which the shares are acquired and then deducted over a period of five years as from the acquisition date. Other long-term investments Other long-term investments are recognised at their nominal value. Receivables Receivables and payables are stated at nominal value. Provisions are recorded to cover any risk of non-recovery of receivables. The majority of the receivables recognised by the Company correspond to amounts due from related companies. Debt issuance costs Debt issuance costs are fully expensed in the year in which they are incurred. Marketable securities Marketable securities are stated at the lower of cost (excluding incidental expenses) and fair value. Foreign currency transactions Income and expenses denominated in foreign currency are translated into euros using the transaction-date exchange rates. Payables, receivables and cash and cash equivalents denominated in foreign currency are translated using the exchange rates prevailing at the year end. Foreign exchange gains and losses resulting from the translation of these assets and liabilities at year-end exchange rates are recognised in the balance sheet under “Unrealised foreign exchange gains” or “Unrealised foreign exchange losses”. A provision for contingencies is recognised for the full amount of any unrealised foreign exchange losses that are not offset by unrealised foreign exchange gains. Provisions for contingencies and charges Provisions for contingencies and charges are recognised in compliance with French GAAP. Provisions for risks relating to subsidiaries A provision is recognised for subsidiaries in relation to which the Company is exposed to a risk.

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Patents

4 years

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Fixtures and fittings

5 to 10 years 3 to 5 years 3 to 5 years 5 to 10 years

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Vehicles

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Office equipment Office furniture

●

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Buildings

20 years

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Shares in subsidiaries and affiliates Shares in subsidiaries and affiliates are stated at historical cost or contribution value. Disposals of these shares are measured on the basis of cost price and capital gains or losses are calculated using the book value of the shares sold. A provision for impairment in value is recognised when the purchase cost of the shares is higher than their value in use, which is assessed independently based on either: ● the multiples method, using comparisons with other companies operating in the same sector. If there is no available data, value in use is calculated based on Assystem’s equity in the underlying net assets of the entities concerned. Main sources of estimation uncertainty The preparation of financial statements involves the use of estimates and assumptions that may affect the carrying amounts of certain items in the balance sheet and/or income statement as well as the disclosures in the notes. Assystem regularly reviews these estimates and assumptions and adjusts them where necessary to take into account past experience and other factors believed to be reasonable in light of the prevailing economic conditions. As the estimates, assumptions and judgements applied are based on the information available or circumstances existing on the date when the financial statements were prepared they may not reflect actual future events. The main estimates made concern provisions for contingencies and charges, and the assumptions applied mostly relate to the preparation of business plans used for assessing the value of shares in subsidiaries and affiliates. ● projected future cash flows; or

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ASSYSTEM

REGISTRATION DOCUMENT 2016