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153
2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
2.14
TREASURY STOCK
Treasury stock is recorded as a deduction from shareholders’ equity, at
cost. Gains and losses from sales of treasury stock (and the related tax
effect) are recorded directly in shareholders’ equity without affecting
income for the period.
2.15
NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE
AND DISCONTINUED OPERATIONS
A discontinued operation is a component of an entity that has been either
disposed of or classified as held for sale, and:
■
represents a separate major line of business or geographical area
of operations;
■
is part of a single coordinated plan to dispose of a separate major line
of business or geographical area of operations; or
■
is a subsidiary acquired exclusively with a view to resale.
It is classified as a discontinued operation at the time of sale or earlier if its
assets and liabilities meet the criteria for classification as “held for sale”.
When a component of an entity is classified as a discontinued operation,
comparative income statement and cash flow information are restated
as if the entity had met the criteria for classification as a discontinued
operation on the first day of the comparative period.
In addition, all the assets and liabilities of the discontinued operation are
presented on separate lines on each side of the statement of financial
position, for the amounts at which they would be reported at the time of
sale after eliminating intra-group items.
2.16
NET SALES NET OF LOYALTY PROGRAM COSTS
Net sales correspond exclusively to sales realized in the Group’s stores
and cash and carry outlets.
In accordance with IFRIC 13 –
Customer Loyalty Programmes,
which
describes the accounting treatment of loyalty award credits granted to
customers as part of a sales transaction, award credits are considered
as a separately identifiable component of the sales transaction and are
deducted from the amount of the sale at fair value.
2.17
OTHER REVENUE
Other revenue, corresponding mainly to sales of financial services and
travel, rental revenues and franchise fees, is reported on a separate line
below “Net sales” in the income statement.
Financial services revenues correspond mainly to bank card fees and
arranging fees for traditional and revolving credit facilities, which are
recognized over the life of the contract.
2.18
GROSS MARGIN FROM RECURRING OPERATIONS
Gross margin from recurring operations corresponds to the sum of net sales and other revenue less cost of sales as defined in Note 8.
2.19
RECURRING OPERATING INCOME
Recurring operating income corresponds to gross margin from recurring operations less sales, general and administrative expenses and depreciation,
amortization and provisions.