FFP_REGISTRATION_DOCUMENT_2017

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FINANCIAL STATEMENTS

Parent-company financial statements

NOTE 1

ACCOUNTING POLICIES AND METHODS

situation of the companies, on the basis of a multi-criteria analysis. The criteria adopted are as follows: O changes in equity; O changes in the dividend distribution policy; O developments in the Company’s economic situation (change in revenue, profits, financial position, etc.); O future prospects; O any material and prolonged decline in the share price. If several of the aforementioned criteria are unfavourable, current value is generally determined on the basis of the average share price over a 1-year period. The resulting value is also compared with valuations carried out by external financial analysts, or with Net Asset Value (NAV), particularly for companies that are primarily focused on real estate. Any significant difference with respect to the average share price is analysed and a view is taken on it. An impairment provision is booked if the current value thus determined is lower than purchase cost. UNLISTED EQUITY SECURITIES The current value of securities in unlisted companies is determined as follows: O assets that have been acquired recently, generally in the last year, are measured at their purchase price, except where the Company’s economic and financial variables (operations, balance sheet, liquidity, etc.) have deteriorated materially; O for other unlisted companies, FFP’s interest is measured using the most appropriate method to give a true and fair view of the Company, depending on the type of investment: • either the discounted future cash flow method, • a method based on Net Asset Value, particularly for companies with a significant real-estate portfolio, • a method that refers to comparable recent transactions, provided that they were not forced and did not take place in abnormal market conditions; the method may also refer to the multiple on which FFP first invested in the company or the exit multiple that may be set out in the shareholder agreements signed by FFP, • otherwise and where the current value cannot be measured in a reliable and appropriate manner, the historic cost method is used, except where the Company’s economic variables have deteriorated materially, in which case this is taken into account in the asset’s valuation. An impairment provision is booked if the current value thus These are securities, listed or otherwise, that represent investments over varying timeframes, with the aim of generating a satisfactory return from them. Their gross value is their purchase price excluding expenses, which are recognised in expenses for the year in accordance with the option available under the French General Accounting Plan (article 213–8). determined is lower than purchase cost. 2. Portfolio Investment Securities

General accounting principles intended to provide a true and fair view of the business were applied in accordance with the principle of prudence and the following basic assumptions: O going concern; O consistency of accounting policies from one period to the next; O accrual basis; and in accordance with general rules for preparing and presenting full-year financial statements (ANC regulation 2014- 03). The basic method used for the valuation of items recorded in the accounts is the historical cost method. The main accounting policies used are set out below. The rules for recognising intangible assets and property, plant and equipment, and the amortisation and depreciation of those assets, are consistent with the French General Accounting Plan. They are recorded as assets at cost (purchase price plus incidental expenses). They have not undergone any remeasurement. Depreciation and amortisation are calculated on a straight-line basis. The main useful lives are as follows: O Intangible assets: • software: 1 year O Property, plant and equipment: • IT hardware: 3 years • fixtures and fittings: 10 years • office furniture: 10 years LONG-TERM INVESTMENTS This item comprises equity securities, Portfolio Investment Securities, other long-term investments and receivables related to shareholdings. 1. Equity securities These include the securities of companies in which FFP’s stake may be less than 10%, but which the Company believes should be held over the long term for reasons of control, strategy or financial management (long-term investment). Their gross value is their purchase price excluding expenses, which are recognised in expenses for the year in accordance with the option available under the French General Accounting Plan (article 213–8). Measurement Equity securities are measured at the lower or purchase price or current value. LISTED EQUITY SECURITIES The current value of securities held in listed companies is determined, after taking into account the economic and financial A. INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT B.

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FFP

2017 REGISTRATION DOCUMENT