RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

The principal changes in scope were as follows:

Gross value

Depreciation

(in millions of euros)

Dinasa trademark in Haiti

8.8 4.6

Acquisition of the Galana activities in Madagascar

(2.1) (2.1)

TOTAL

13,4

4.4 INTERESTS IN ASSOCIATES

Information about non-controlling interests, interests in joint operations and interests in joint ventures is given in notes 7 to 9.

4.5 FINANCIAL ASSETS

ACCOUNTING POLICIES Financial assets are recognized and measured in accordance with IAS 39 “Financial instruments: recognition and measurements”. Financial assets are recognized in the Group balance sheet when the Group is a party to the instrument’s contractual provisions. IAS 39 distinguishes between 4 categories of financial assets, which are valued and recognized according to each category: • financial assets held at fair value through profit and loss are those that are held for the purpose of trading in the short term; this category includes marketable securities that cannot be classified as “Cash and cash equivalents” and derivative instruments not classified as hedging instruments; they are measured at fair value at the closing date and changes in fair value are recognized through profit and loss for the period; • loans and receivables issued correspond to financial assets with fixed or determinable payments, not listed on an active market; this category includes receivables from investments, other loans, and trade and other receivables. These assets are recognized at amortized cost, applying the effective interest rate method, if applicable; • held to maturity investments are financial assets with fixed or determinable payments, with a fixed maturity date, and which the entity expressly intends to and has the ability to hold until maturity; this category mainly concerns deposits and guarantees paid against operating leases. These assets are recognized at amortized cost; • assets available for sale include financial assets not falling into any of the categories listed above, including equity securities in non- consolidated companies. These securities are initially recognized at fair value (usually their acquisition cost plus transaction costs). Changes in fair value of assets available for sale are recognized as items of other comprehensive income. In the event of a significant or prolonged decrease in the fair value below their acquisition price, an impairment is recorded in net income. The Group used the fair value hierarchy in IFRS 7 to determine the classification level of the financial assets: • level 1: quoted prices in active markets for identical assets or liabilities; • level 2: use of data other than the quoted prices listed in level 1, which are directly observable for the assets or liabilities in question, either directly or indirectly; • level 3: use of data relating to the asset or liability which are not based on observable market data. Measurement and recognition of derivative instruments The Group uses derivative financial instruments to manage its exposure to fluctuations in interest rates, foreign exchange rates and raw material prices. The Group’s hedging policy includes the use of swaps. It may also use caps, floors, and options. The derivative instruments used by the Group are valued at their fair value. Unless otherwise specified below, changes in the fair value of derivatives are always recorded in the income statement.

2017 Registration Document I RUBIS

199