2017 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

c. Available-for-sale assets Available-for-sale assets are non-derivative financial assets not falling into any other category, whether or not the Group intends to dispose of them. Changes in the fair value of these assets are recognised directly in equity with the exception of impairment losses, which are recognised in profit or loss and considered final. Equity instruments whose fair value cannot be reliably measured (assets not quoted on an active market or for which there is no active market) are recognised at cost. The Group has included in this category its investments in unconsolidated entities over which it exercises no control or significant influence, and listed bonds for which there is not considered to be an active market. d. Impairment of financial assets At each balance sheet date, the Group assesses whether or not there exists objective evidence that a financial asset or group of financial assets may be impaired. Loans and receivables are impaired when their estimated recoverable amount is less than their net carrying amount. For trade accounts receivable, impairment losses are recognised on an individual basis to reflect any problems of recovery. These write-downs are charged to profit and loss as part of Operating profit on business activity and reversed in the event of an improvement in the recoverable amount. Available-for-sale assets must be measured at fair value. Unrealised gains are recorded in Other comprehensive income , as are unrealised losses, unless they relate to impairment. Changes in fair value are recognised under Other comprehensive income . If these assets are considered to be impaired, the impairment losses are charged to profit and loss and are deemed final. The recoverable amount of these assets is estimated based on criteria such as the Group’s share of an entity’s net assets and its outlook on growth and profitability. Impairment losses are recognised directly in profit or loss as part of Other financial income and expenses and cannot subsequently be reversed.

The Group classifies its financial assets into the following categories: p financial assets at fair value through profit or loss; p held-to-maturity investments;

p loans and receivables; and p available-for-sale assets.

Classification depends on the purposes for which financial assets were acquired. Management determines the appropriate classification at the time of initial recognition and performs a reassessment at each interim or annual reporting date. The financial assets recognised by the Group consist of the items described below: a. Assets measured at fair value through profit or loss This category comprises both financial assets held for trading (i.e. acquired with a view to resale in the near term) and those designated upon initial recognition as at fair value through profit or loss. Changes in the fair value of assets of this category are recognised in profit or loss. These assets are mostly marketable securities and other cash equivalents. b. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They comprise the financial assets arising when the Group transfers funds, or provides goods and services, to an individual or entity. Loans and receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method. The Group distinguishes between: p long-term loans and receivables classified as non-current financial assets; p short-term trade accounts receivable and other equivalent receivables. Short-term trade accounts receivable continue to be measured at the nominal amount originally invoiced, which usually equates to the fair value of the consideration to be received.

7.1.1. Available-for-sale assets

Gross value

Impairment Carrying amount

(in millions of euros)

31 December 2016

9.6 0.3 6.6 -0.1 -2.4


9.6 0.3 6.6 -0.1 -2.4

Changes in scope


Increase Decrease

- - - -

Other movements

Translation adjustments 31 DECEMBER 2017






The measurement of the fair value of available-for-sale assets is based on the following assumptions: p quoted data (Level 1): 90%; p observable data (Level 2): 0%; p internal models (Level 3): 10%. On 30 June 2017, the Group converted its CS Communication & Systèmes bonds into shares, thereby giving it access to 11.39% of

the company’s share capital. The carrying amount of the bonds was €8.0 million, and that of the shares obtained through conversion was €14.5 million, thereby generating income of €6.5 million recognised under Other financial income and expenses (see Note 11.1.2). At 31 December 2017, the value of the CS Communication & Systèmes shares was €12.8 million.



Made with FlippingBook - Online catalogs