Sopra Steria - 2018 Registration document

2018 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

❙ SUMMARY FINANCIAL INFORMATION RELATING TO THE AXWAY SOFTWARE GROUP

31/12/2018

31/12/2017

(in millions of euros)

Non-current assets

422.7 131.1 362.8

420.7 130.4 344.1

Current assets

Equity

Non-current liabilities excluding equity

53.2

70.3

Current liabilities

137.9 283.8

136.7 299.8

Revenue Net profit

11.0

4.4

Recognition and impairment of investments in associates Investments in associates are initially recognised at acquisition cost, and their value is then adjusted to reflect changes in the Group’s share of their net assets. The remainder of this share appears under Equity-accounted investments on the asset side of the balance sheet. Its change over the financial year is recognised in profit or loss within Net profit from associates . Equity-accounted shares in a company constitute a single asset and must be tested for impairment in accordance with IAS 36 Impairment of Assets . Goodwill on associates is included in the value of equity- accounted investments, the value of which is measured inclusive of goodwill. As such, goodwill on associates must not be tested for impairment separately. At each balance sheet date, where there is an indication of impairment of an investment in an associate, the parent company must carry out an impairment test consisting of comparing the

carrying amount of the relevant equity-accounted investment with its recoverable amount. Under IAS 36, the recoverable amount of an investment in an associate is the higher of its value in use, calculated on the basis of future cash flows, and the fair value of the investment less costs of disposal. Where an associate’s shares are listed, fair value less costs of disposal is equal to market price less costs to sell: in the absence of any firm sale agreement, this is the price at which the shares are currently trading. Any impairment losses are charged to profit or loss as Other operating income and expenses . Where there is an improvement in the recoverable amount of an equity-accounted investment such that the impairment loss may be written back, the full amount of the impairment loss, including the portion relating to goodwill, must be written back.

150

SOPRA STERIA REGISTRATION DOCUMENT 2018