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218 2014 Registration Document
Company financial statement year ended December 31, 2014
6
Notes to the Company Financial Statements
Note 1
Accounting principles
The Financial Statements of the Company have been prepared and
presented in accordance with the principles and methods defined in
Comité de la Réglementation Comptable
(CRC) Regulation 2014-03,
approved by government order of September 8, 2014.
The Financial Statements have been prepared on a going concern basis
using the accruals method, in accordance with the basic principle of
prudence. Accounting policies have been applied consistently from one
period to the next.
Assets and liabilities are measured according to the historical cost
convention.
There were no changes in measurement or presentation methods in 2014
compared with the previous year.
1.1
TANGIBLE AND INTANGIBLE FIXED ASSETS
Intangible assets are mainly composed of software, stated at acquisition
or development cost, goodwill stated at contributed value, and the deficits
arising from the Carrefour-Promodès merger in 2000. Goodwill is tested
for impairment at each year-end, to confirm that its net book value does
not exceed its recoverable amount, defined as the higher of fair value less
costs to sell and value in use. Value in use is determined by discounting
the future cash flows expected to be generated by the use of the asset,
adjusted for the net debt of the tested entity if applicable.
Tangible fixed assets are stated at cost, corresponding to the purchase
price and ancillary expenses.
Intangible fixed assets are amortized and tangible fixed assets are
depreciated over their estimated useful lives, as follows:
■
software: 3 to 8 years;
■
computer equipment: 3 years;
■
building fixtures and fittings: 8 years;
■
other: 3 to 10 years.
If the net book value of a tangible or intangible fixed asset is not expected
to be recovered through the future economic benefits generated by the
asset, an impairment loss is recognized for the difference between its net
book value and the higher of its value in use and fair value less costs to sell.
1.2
FINANCIAL INVESTMENTS
Financial investments consist of shares in subsidiaries and affiliates, advances to subsidiaries and affiliates, loans and other financial investments.
1.3
SHARES IN AND ADVANCES TO SUBSIDIARIES AND AFFILIATES
Shares in subsidiaries and affiliates are stated at the lower of cost and
either fair value or value in use.
Value in use is estimated based on a range of criteria including the
Company’s interest in the investee’s net assets, projected future cash
flows from the investment and a fair value measurement based on
reasonable business projections.
Impairment losses are recorded in net financial expense, along with
impairments written off on disposal of the interests concerned. Gains and
losses on disposal of shares in subsidiaries and affiliates are recorded
in non-recurring income and expense.
1.4
LOANS AND OTHER FINANCIAL INVESTMENTS
Loans and other financial investments are stated at nominal value.
An impairment loss is recognized when their estimated recoverable
amount is less than their carrying amount.