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145
2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
Apart from IFRIC 21, no other standards, amendments or interpretations
not applicable as of January 1, 2014 were early adopted.
Adopted for use in the European Union:
■
IFRS Annual Improvements, 2010-2012 and 2011-2013 (applicable
in annual periods beginning on or after July 1, 2015).
Not yet adopted for use in the European Union:
■
IFRS 15 –
Revenue from Contracts with Customers.
This standard,
which is applicable in annual periods beginning on or after January 1,
2017 retroactively, may have an impact on the amount and timing of
revenue recognition by the Group. This impact cannot yet be reasonably
estimated;
■
IFRS 9 –
Financial Instruments.
This standard, which is applicable in
annual periods beginning on or after January 1, 2018, may have an
impact on the amount and timing of the recognition of financial assets
and liabilities and on profit. This impact cannot yet be reasonably
estimated;
■
IFRS Annual Improvements, 2012-2014 (applicable in annual periods
beginning on or after January 1, 2016).
The possible impact on the Consolidated Financial Statements of applying
these new and amended standards is currently being assessed.
1.3
USE OF ESTIMATES
Preparation of Consolidated Financial Statements involves the use of
management estimates and assumptions that may affect the reported
amounts of certain assets, liabilities, income and expenses, as well as the
disclosures contained in the notes. These estimates and assumptions are
reviewed at regular intervals to ensure that they are reasonable in light
of past experience and the current economic situation. Actual results
may differ from current estimates.
The main management estimates used in the preparation of the
Consolidated Financial Statements concern the useful lives of operating
assets, the recoverable amount of goodwill and other intangible assets
(Note 17) and property and equipment (Note 18), and the amount of
provisions for contingencies and other business-related provisions
(Note 29). The main assumptions concern pension and other post-
employment benefit obligations (Note 30) and recognized deferred
taxes (Note 21).
Note 2
Summary of significant accounting policies
The accounting policies described below have been applied consistently in all periods presented in the Consolidated Financial Statements and by
all Group entities.
2.1
BASIS OF CONSOLIDATION
Companies over which the Group exercises control, directly or indirectly,
are fully consolidated. An entity is controlled when the Group 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.
Investments in associates – defined as entities over which the Group
has significant influence – and joint ventures are accounted for by the
equity method. This method consists of recognizing in the Consolidated
Financial Statements the Group’s share of the total profits and losses
recorded by the associate or joint venture as adjusted to comply with
Group accounting policies, for the period from the date when significant
influence or joint control is acquired until the date when it is lost.
Investments in companies where the Group does not exercise control
or significant influence over financial and operating policy decisions are
reported under “Other non-current financial assets”. The accounting
treatment of these investments is described in the paragraph 2.7 “Other
financial assets and liabilities”.