Cap Gemini - Registration Document 2016

FINANCIAL INFORMATION

4.4 2016 Financial statements

4.4.3 I - Accounting policies

to the financial statements

received in advance on certificates of deposit and commercial respectively. paper is recognized in accrued income or prepaid income, included in marketable securities. Capitalization contracts subscribed by the Company are also year-end exchange rate or at the hedging rate. Any differences denominated in foreign currencies are translated into euros at the payables at these rates are included in the balance sheet under resulting from the translation of foreign currency receivables and exchange losses is set aside to cover any unrealized losses. “Unrealized foreign exchange gains/losses”. A provision for foreign Receivables, payables and cash and cash equivalents recognized excluding VAT. falls below their net carrying amount. Unbilled payables are provision for impairment set aside when their net realizable value Receivables are measured at their nominal amount, and a Financial instruments Currency and interest rate positions are taken using financial organized markets or over-the-counter. Gains and losses on instruments presenting minimum counterparty risk listed on to match the gains and losses arising on the hedged items. The financial instruments used in hedging transactions are recognized accounts of the Company in accordance with French accounting fair value of financial instruments, which is not recognized in the principles, is estimated based on market prices or pricing data provided by banks. Forward financial instruments, and options on own shares, are subsequently remeasured to fair value. Where there is indication of initially recognized in the balance sheet at acquisition cost and with the principle of prudence. impairment, a provision for financial risk is set aside in accordance consolidation The Company and French subsidiaries at least 95% owned by the Group have elected to file consolidated tax returns pursuant to realized by the Group primarily on account of losses incurred by Article 223 A of the French General Tax Code. Any tax savings period in which they arise. consolidated entities are treated as a gain for the Company in the Foreign currency transactions Receivables and payables

prepared in accordance with the principles of prudence and Authority ( Autorité des Normes Comptables , ANC). They are also accruals, and assuming that the Company is able to continue as a The annual financial statements for the year ended December 31, No. 2014-03 issued by the French Accounting Standards 2016 are prepared and presented in accordance with Regulation going concern. Items in the financial statements are generally measured using the historical cost method. The Company’s main accounting policies are described below: user rights is compared to their value in use for the Company. three years. At the year-end, the value of computer software and results, are capitalized and amortized over a maximum period of Computer software and user rights acquired on an unrestricted which has a positive, lasting and quantifiable effect on future ownership basis, as well as software developed for internal use The gross value of equity interests and other long-term acquisition cost, including any transaction fees. A provision for investments carried in the balance sheet comprises their acquisition cost. The value in use is calculated based on either the impairment is set aside when the value in use falls below the Intangible assets Financial fixed assets reference to the market value of comparable transactions. debt, the Company’s share in net assets, or in certain cases, with present value of discounted future cash flows adjusted for net investments at the lower of cost and net realizable value. agreement are recorded on the balance sheet within long-term shares in December. Other treasury shares held for other Realizable value is the average market price for Cap Gemini S.A. shares. objectives of the share buyback program are recorded in listed Treasury shares held by Cap Gemini S.A. as part of the liquidity value. At the year-end, accrued interest receivable or interest of cost and net realizable value. The realizable value of listed realizable value of unlisted securities is based on their net asset securities is based on the average share price in December. The Marketable securities are shown on the balance sheet at the lower Marketable securities Treasury shares

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Registration Document 2016 — Capgemini