CARREFOUR - 2014 annual financial report

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144 2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014 5 Notes to the Consolidated statements
Note 1 Basis of preparation of the Consolidated
Financial Statements
1.1 ACCOUNTING PRINCIPLES AND STATEMENT OF COMPLIANCE
The Consolidated Financial Statements for the year ended December 31,
2014 were approved for publication by the Board of Directors on March 4,
2015. They will be submitted to shareholders for final approval at the
Annual General Meeting.
Carrefour (the “Company”) is domiciled in France. The Consolidated
Financial Statements for the year ended December 31, 2014 comprise
the Financial Statements of the Company and its subsidiaries (together
the “Group”) and the Group’s share of the profits and losses, assets and
liabilities of associated and jointly controlled companies. The presentation
currency of the Consolidated Financial Statements is the euro, which is
the Company’s functional currency.
In accordance with European Regulation (EC) 1606/2002 dated July 19,
2002, the 2014 Consolidated Financial Statements have been prepared
in compliance with the international accounting standards adopted for
use in the European Union as of December 31, 2014 and applicable
at that date, with 2013 comparative information prepared using the
same standards.
International accounting standards comprise International Financial
Reporting Standards (IFRSs), International Accounting Standards (IASs),
International Financial Reporting Standards Interpretation Committee
(IFRIC) Interpretations and Standing Interpretations Committee (SIC)
Interpretations.
All of the standards and interpretations adopted for use in the European
Union are available on the European Commission’s website:
At December 31, 2014, the standards and interpretations adopted for
use in the European Union were the same as those published by the
IASB and applicable at that date, except for IAS 39, which was only
partly adopted. The unadopted provisions of IAS 39 had no impact on
the Group’s Consolidated Financial Statements.
1.2 IFRS AND INTERPRETATIONS APPLIED BY THE GROUP
The accounting and calculation methods used to prepare the 2014
Consolidated Financial Statements are the same as those used in 2013,
except for:
■ IFRS 10 – Consolidated Financial Statements. This standard replaces
the sections of IAS 27 – Consolidated and Separate Financial
Statements dealing with Consolidated Financial Statements, and
SIC 12 – Consolidation – Special Purpose Entities. IFRS 10
redefines control. In line with the new definition, the Carrefour group’s
Consolidated Financial Statements include the Financial Statements
of all entities that the Group controls directly or indirectly, whatever its
percentage interest in their equity. The Group controls an entity when
it is exposed, or has rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its
power over the entity. Adoption of IFRS 10 had no material impact
on the Group’s scope of consolidation;
■ IFRS 11 – Joint Arrangements. This standard replaces IAS 31 –
Interests in Joint Ventures, and SIC 13 – Jointly Controlled Entities:
Non-Monetary Contributions by Venturers. IFRS 11 outlines the
accounting treatment by entities that jointly control an arrangement.
Joint control involves the contractually agreed sharing of control and
arrangements subject to joint control are classified as either a joint
operation (representing rights to assets and obligations for liabilities,
accounted for accordingly) or a joint venture (representing a share
of net assets and equity accounted). Carrefour jointly controls an
arrangement when decisions about the relevant activities require the
unanimous consent of the parties sharing control. The proportionate
consolidation method is not recognized under IFRS 11. The Group
did not use this method in prior periods.
■ Adoption of IFRS 11 had no material impact on the Group’s scope
of consolidation;
■ IFRS 12 – Disclosure of Interests in Other Entities. This standard lists
all the disclosures required when an entity has interests in subsidiaries,
joint arrangements, associates or unconsolidated structured entities,
whatever the level of control or influence exercised by the entity;
■ IAS 28 – Investments in Associates and Joint Ventures, as revised
to take into account the changes resulting from the publication of
IFRS 10, 11 and 12;
■ amendment to IAS 32 – Financial Instruments: Presentation concerning
the offsetting of financial assets and financial liabilities;
■ amendment to IAS 36 – Impairment of Assets, concerning recoverable
amount disclosures for non-financial assets;
■ amendment to IAS 39 – Financial Instruments: Recognition and
Measurement, dealing with the novation of derivatives and continuation
of hedge accounting;
■ IFRIC 21 – Levies, adopted by the European Union on June 13,
2014 and early-adopted by the Group. This interpretation defines
the obligating event for the recognition of a liability as the activity
that triggers the payment of the levy in accordance with the relevant
legislation:
■ early adoption of IFRIC 21 had the effect of increasing consolidated
equity at January 1, 2013 by €82 million,
■ the impact on the 2013 consolidated income statement was
not material.