149 / 266
149
2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
2.7
FINANCIAL ASSETS AND LIABILITIES (EXCLUDING BANKING ACTIVITIES)
2.7.1 NON-DERIVATIVE FINANCIAL ASSETS
◗
2.7.1.1 Accounting policy
In accordance with IAS 39, the main financial assets are classified in
one of the following four categories:
■
financial assets at fair value through profit or loss;
■
loans and receivables;
■
held-to-maturity investments;
■
available-for-sale financial assets.
The classification of these assets determines their accounting treatment.
Classification is determined by the Group upon initial recognition, based
on the type of asset and the purpose for which it was acquired. Purchases
and sales of financial assets are recognized on the trade date, defined as
the date on which the Group is committed to buying or selling the asset.
◗
Financial assets at fair value through profit or loss
These are financial assets held for trading,
i.e.
assets acquired principally
for the purpose of selling them at a profit in the short term, or financial
assets designated at the outset as at fair value through profit or loss.
They are measured at fair value with changes in fair value recognized in
the income statement, under financial income or expense.
◗
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market and that
do not meet the criteria for classification as either held for trading or
available for sale.
They are initially recognized at fair value and are subsequently measured at
amortized cost by the effective interest method. For short-term receivables
with no specified interest rate, fair value is considered as being equal to
the original invoice amount.
These assets are tested for impairment when there is an indication that
their recoverable amount may be less than their carrying amount. If this
is found to be the case, an impairment loss is recorded.
This category includes receivables from non-consolidated companies,
other loans and receivables and trade receivables. They are reported
under “Other financial assets” or “Trade receivables”.
◗
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets other
than loans and receivables with fixed or determinable payments and a
fixed maturity that the Group has the positive intention and ability to hold
to maturity. They are initially recognized at fair value and are subsequently
measured at amortized cost by the effective interest method.
These assets are tested for impairment when there is an indication that
their recoverable amount may be less than their carrying amount. If this
is found to be the case, an impairment loss is recorded.
Held-to-maturity investments are reported under “Other financial assets”.
The Group did not hold any assets classified as held-to-maturity at
December 31, 2014 and December 31, 2013.
◗
Available-for-sale financial assets
Available-for-sale financial assets are financial assets that do not meet
the criteria for classification in any of the other three categories. They
consist mainly of shares in non-consolidated companies. Available-for-
sale financial assets are measured at fair value, with changes in fair value
recognized in other comprehensive income, under “Changes in the fair
value of available-for-sale financial assets”. When the assets are sold,
the gains and losses accumulated in shareholders’ equity are reclassified
to the income statement.
However, in the event of a prolonged or significant fall in value of an
equity instrument or a decline in estimated cash flows from a debt
instrument, an impairment loss is recognized in the income statement.
If, in a subsequent period, the impairment loss decreases, the previously
recognized impairment loss is released:
■
for equity instruments (shares and other): through other comprehensive
income;
■
for debt instruments (bonds, notes and other): where an increase is
observed in estimated future cash flows, through profit or loss for an
amount not exceeding the previously recognized impairment loss.
The fair value of listed securities corresponds to their market price.
For unlisted securities, fair value is determined by reference to recent
transactions or by using valuation techniques based on reliable and
observable market data. When it is impossible to obtain a reasonable
estimate of an asset’s fair value, it is measured at historical cost.
◗
2.7.1.2 Non-derivative financial assets held
by the Group
The main non-derivative financial assets held by the Group are as follows:
◗
Non-current financial assets
This line item mainly comprises investments in non-consolidated
companies and long-term loans.
◗
Trade receivables
Trade receivables include amounts receivable from suppliers and
franchisees and rent receivable from tenants of shopping mall units.
Impairment losses are recognized where necessary, based on an estimate
of the debtor’s ability to pay the amount due and the age of the receivable.
◗
Current financial assets
Current financial assets consist mainly of available-for-sale financial
assets, measured at fair value, and short-term loans and deposits.
◗
Cash and cash equivalents
Cash equivalents are highly liquid investments with an original maturity
of less than three months that are readily convertible to a known amount
of cash and are subject to an insignificant risk of changes in value.
Cash includes cash on hand and demand deposits.