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Consolidated Financial Statements as of December 31, 2015
Notes to the Consolidated Financial Statements
Property and equipment
6.2
Accounting policies
Property and equipment mainly comprise buildings, store fixtures and investment properties, hypermarkets and supermarkets for which the
fittings and land.
construction period exceeds one year.
Initial recognition
Assets under construction are recognized at cost less any identified
impairment losses.
In accordance with IAS
16 –
Property, Plant and Equipment
, land,
buildings and equipment are stated at cost less accumulated
Useful lives
depreciation and any accumulated impairment losses. Borrowing costs
Depreciation of property and equipment begins when the asset is
that are directly attributable to the acquisition, construction or
available for use and ends when the asset is sold, scrapped or
production of a qualifying asset are capitalized as part of the cost of the reclassified as held for sale in accordance with IFRS
5 –
Non-current
asset. Qualifying assets are defined in IAS
23 –
Borrowing Costs
as
Assets Held for Sale and Discontinued Operations
(Note 3.1).
assets that necessarily take a substantial period of time to get ready for
Land is not depreciated. Other property and equipment, or each
their intended use or sale, corresponding in the Group's case to
significant part of an item of property or equipment, are depreciated by
the straight-line method over the following estimated useful lives:
Building
●
40 years
Buildings
Site improvements
●
10 to 20 years
Car parks
●
6 to 10 years
Equipment, fixtures and fittings
4 to 8 years
Other
3 to 10 years
In light of the nature of its business, the Group considers that its
Finance leases are accounted for as follows:
property and equipment have no residual value.
the leased assets are recognized in the statement of financial
●
Depreciation periods are reviewed at each period-end and, where
position at fair value or, if lower, the present value of the minimum
appropriate, adjusted prospectively in accordance with IAS 8.
lease payments. They are depreciated over their useful life, in the
same way as assets owned outright, or, if shorter, over the lease
Leases
term;
New long-term leases – particularly property leases – are analyzed in
the liability for the future lease payments is recognized in the
●
accordance with IAS
17 –
Leases
to determine whether they represent
statement of financial position under "Long-term borrowings" and
operating leases or finance leases,
i.e.
, leases that transfer substantially
"Short-term borrowings" (Note 12.2.1);
all the risks and rewards incidental to ownership of the asset to the
lease payments are apportioned between the finance charge and the
●
lessee. For property leases, the analysis is performed separately for the
reduction of the outstanding liability.
land on the one hand and the building on the other.
Leases that do not transfer substantially all the risks and rewards
incidental to ownership of the asset to the lessee are classified as
operating leases. Operating lease payments are recognized in the
income statement (under "recurring operating expenses") on a
straight-line basis over the life of the lease (Note 5.2.2).
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2015 REGISTRATION DOCUMENT