Assystem - Registration Document 2016

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

OPERATIONAL DATA

NOTE 5

5.1 Working capital requirement (WCR)

REVENUE Revenue corresponds to the gross inflows of economic benefits received or receivable by the Group during the period on its own account which arise from ordinary operating activities and result in increases in equity. IAS 18 requires revenue to be measured at the fair value of the consideration received or receivable. In most cases, the consideration is in the form of cash or cash equivalents and the amount of revenue is the amount of cash or cash equivalents received or receivable. The Group recognises its revenue in the period in which the services are rendered. Revenue for the Group comprises: ● the valuation at cost price of services for which the Group has undertaken works and for which it is certain that it will receive an order from the client; and ● commissions on business for which the Group acts as an agent. Depending on the type of transaction involved, the criteria for determining the stage of completion of services rendered at a given date can at include: ● the proportion that costs incurred to date bear to the estimated total costs of the transaction. The criteria applied are left to the discretion of the operating unit’s manager who chooses those that are best suited to the project. The Group’s services are valued based on the following: ● time and materials contracts: the valuation of services rendered under these contracts depends on the resources used. Revenue is determined on a time-spent basis, agreed on with the client, and corresponding to an aggregate resulting from the multiplication of an hourly or daily rate; ● fixed-price contracts: services rendered under these contracts are valued based on the percentage of completion method as defined in IAS 11; ● provisions for losses on completion: a provision is recognised when it is probable that contract costs will exceed contract revenue. The amount of the provision is calculated by reference to the stage of completion less the loss already recognised, and it is recorded under “Depreciation, amortisation and provisions for recurring operating items, net”. GOVERNMENT GRANTS AND TAX CREDITS Government grants and tax credits related to operating expenses are recognised in the income statement over the periods necessary to match them with the costs they are intended to compensate. They are recorded either: ● invoices issued or to be issued for services rendered; ● surveys of work performed; ● services performed to date as a percentage of total services to be performed; or

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● as a deduction from the corresponding expense if they are intended to compensate an identified cost, or

● as a decrease in other operating expenses if they are granted for general purposes. TRADE RECEIVABLES Trade receivables include:

● services invoiced but not yet paid for;

● services completed but not yet invoiced, measured at the sale price;

● work-in-progress measured at cost price.

Trade receivables are initially recognised at fair value and subsequently measured at fair value less any accumulated impairment losses. An impairment loss is recognised if there is objective evidence that the Group will be unable to collect all the contractual amounts due. The amount of the impairment loss recognised corresponds to the difference between the amount recorded under assets and the fair value of the discounted future cash flows.

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ASSYSTEM

REGISTRATION DOCUMENT 2016