Atos - Registration Document 2016

E Financial E.4

Consolidated financial statements

contract duration, the period of amortization will be between 5 and 12 years with a standard scenario of 7 years. It is typically the case for large mutualized payment platforms. for internal software development with slow technology • obsolescence serving activities with a long business cycle and earning method that consists in summing future operating margins attributable to contracts, after tax and capital employed. Customer relationships are valued as per the multi-period excess Intangible assets are amortized on a straight-line basis over their expected useful life, generally not exceeding 5 to 7 years for internally developed IT solutions in operating margin. customer relationships, patents and trademarks acquired as part of a business combination are amortized on a straight-line basis over their expected useful life, generally not exceeding 12 years; any related depreciation is recorded in other operating expenses. Tangible assets Tangible assets are recorded at acquisition cost. They are depreciated on a straight-line basis over the following expected Although some outsourcing contracts may involve the transfer of computing equipment to Atos, control of the asset usually remains with the customer as they generally retain the asset. When ownership of the computing equipment is transferred to the Group a payment generally occurs at the beginning of the contract. Therefore IFRIC 18 does not have a significant impact on the Group accounts. lease term. minimum lease payments. Assets acquired under finance lease are depreciated over the shorter of the assets’ useful life and the Asset leases where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s inception at the lower of the fair value of the leased asset and the present value of the Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Leases useful lives: buildings • 20 years; fixtures and fittings • computer hardware • 5 to 10 years; 3 to 5 years; vehicles • 4 years; office furniture and equipment • 5 to 10 years;

Financial assets Financial assets are accounted for at trade date.

Investments in non-consolidated companies

expense”. in the fair value of available for sale assets are recognized as “items recognized directly in equity”. If there is evidence that an asset is permanently impaired, the cumulative loss is written off in the income statement under “other financial income and evidence of a permanent or significant loss of value. The most common financial criteria used to determine fair value are equity and earnings outlooks. Gains and losses arising from variations corresponds to the share price at the closing date. In the absence of an active market for the shares, investments in non-consolidated companies are carried at historical cost. An impairment charge is recognized when there is objective The Group holds shares in companies without exercising significant influence or control. Investments in non-consolidated companies are treated as assets available for sale and recognized at their fair value. For listed shares, fair value cost. the specific security. If the fair value of an available-for-sale financial asset cannot be reliably measured, it is recognized at comprehensive income is transferred to the income statement. For securities listed on an active market, fair value is considered to equal market value. If no active market exists, fair value is generally determined based on appropriate financial criteria for non-consolidated entities. They are measured at fair value, with changes in fair value recognized in other comprehensive income. When an available-for-sale financial asset is sold or impaired; the cumulative fair value adjustment recognized in other Available-for-sale financial assets include equity investments in problems into account. provision is raised on an individual basis to take likely recovery value represents usually the initial fair value for trade accounts and notes receivable. In case of deferred payment over one year, where the effect is significant on fair value, trade accounts and notes receivables are discounted. Where appropriate, a Loans are part of non-current financial assets. Loans, trade accounts and notes receivable are recorded initially at their fair value and subsequently at their amortized value. The nominal lease contracts if they convey a right to use an asset in return for payments included in the overall contract remuneration. If service arrangements contain a lease, the Group is considered to be the lessor regarding its customers. Where the lease transfers Certain service arrangements might qualify for treatment as financial assets” for the amount to be settled beyond 12 months. the risks and rewards of ownership of the asset to its customers, the Group recognizes assets held under finance lease and presents them as “Trade accounts and notes receivable” for the amount that will be settled within 12 months, and “Non-current Available-for-sale financial assets Loans, trade accounts and notes receivable

Impairment of assets other than goodwill

whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable value. Assets that are subject to amortization are tested for impairment

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