TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

IFRS transition & new standards 1.2.2. Main accounting options selected for the 1.2.2.1. transition to IFRS in 2004 IFRS 1, First-time Adoption of IFRS, sets out the rules to be followed by first-time adopters of IFRS when preparing their first IFRS consolidated financial statements. At the transition date, for the preparation of the opening IFRS balance sheet, the Group has opted to apply the following main options and exemptions provided by IFRS 1: Business combinations In accordance with IFRS 3, the Group has opted not to restate past business combinations that occurred before January 1, 2004.

Cumulative translation differences The Group elected to recognize cumulative translation differences of the foreign subsidiaries into opening retained earnings as of January 1, 2004, after having accounted for the IFRS adjustments in the opening shareholders’ equity. All cumulative translation differences for all foreign operations have therefore been deemed to be zero at the IFRS transition date. The gain or loss on a subsequent disposal of any foreign operation will exclude translation differences that arose before the IFRS transition date but will include later translation differences.

New standards, amendments and interpretations 1.2.2.2.

Main standards, amendments and interpretations effective and applied as of January 1, 2017 ■ New standard and interpretation Main provisions

Amendments to IAS 7 – Statement of cash flows

These amendments are part of the IASB’s Disclosures Initiative and help users of financial statements better understand changes in an entity’s debt arising from financing activities, including both changes arising from cash flows and non-cash changes. These amendments provide clarification on the deferred tax accounting for debt instruments measured at fair value. There was no significant impact identified.

Amendments to IAS 12 – Income taxes

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TECHNICOLOR REGISTRATION DOCUMENT 2017