RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

NOTE 2. Accounting policies

All significant transactions conducted between consolidated companies as well as internal profits are eliminated. Foreign exchange differences arising from the elimination of transactions and transfers of funds denominated in foreign currencies between consolidated companies, are subject to the following accounting treatment: • foreign exchange differences arising from the elimination of internal transactions are recorded as “foreign exchange differences” in shareholders’ equity andas “non-controlling interests” for the portion attributable to third parties, thereby offsetting their impact on consolidated income; • foreign exchange differences on fund movements for reciprocal financing are classified under a separate heading in the consolidated cash flow table. The consolidated financial statements are denominated in euros and the financial statements are presented in thousands of euros.

to the fair value of business combinations, goodwill impairment tests, property, plant and equipment and intangible assets, provisions and changes in employee benefit obligations. The consolidated financial statements for the year ended December 31, 2017 include the financial statements for Rubis and its subsidiaries. The subsidiaries operate in their local currencies, which are used to denominate the majority of their transactions. The exceptions are Rubis Terminal Petrol (formerly Delta Rubis Petrol), located in Turkey, and its holding company Rubis Tankmed BV (formerly Rubis Med Energy BV), located in the Netherlands, both of which operate in US dollars. Balance sheet items are translated into euros at the exchange rate applicable on the closing date, and income statement items are translated using the average exchange rate over the reporting period. Any resulting currency translation differences are recorded as foreign exchange differences and included in consolidated shareholders’ equity.

2.1 BASIS OF PREPARATION The consolidated financial statements are prepared based on historical costs with the exception of certain categories of assets and liabilities, in accordance with IFRS rules. The categories concerned are specified in the notes below. To prepare its financial statements, the Group’s Management must make estimates and assumptions that affect the book value of assets and liabilities, income and expenses, and the data disclosed in the Notes to the financial statements. The Group’s Management makes these estimates and assessments on an ongoing basis according to past experience as well as various factors that are deemed reasonable and that constitute the basis for these assessments. The amounts that will appear in its future financial statements may differ from these estimates, in accordance with changes in these assumptions or different conditions. The main significant estimates made by the Group’s Management pertain in particular

2.2 ACCOUNTING STANDARDS APPLIED

Standards, interpretations and amendments applicable as of January 1, 2017 The following standards, interpretations and amendments published in the Official Journal of the European Union (unless mentioned below) as of the closing date were applied for the first time in 2017:

Date of mandatory application subject to adoption by the EU

Standard/Interpretation

Amendments to IAS 7 Amendments to IAS 12 Annual improvements

Disclosures on financing activities

January 1, 2017 January 1, 2017 January 1, 2017*

Recognition of deferred tax assets for unrealized losses

Annual IFRS improvements, cycle 2014-2016. Standard concerned: IFRS 12

* Not adopted by the European Union in 2017.

The first-time application of these standards, interpretations and amendments did not have a material impact on the Group’s financial statements.

2017 Registration Document I RUBIS 186