Carrefour - 2017 Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements 2017 REGISTRATION DOCUMENT | CARREFOUR 5. 224 Not yet adopted for use in the European Union Standards, amendments and interpretations Effective date (1) Amendments to IFRS 10 and IAS 28 – Sales or Contribution of Assets between an Investor and its Associate or Joint Venture Application deferred indefinitely by the IASB Amendments to IFRS 2 – Classification and Measurement of Share-based Payment Transactions January 1, 2018 Amendments to IAS 40 – Transfers of Investment Property January 1, 2018 IFRIC 22 – Foreign Currency Transactions and Advance Consideration January 1, 2018 IFRIC 23 – Uncertainty over Income Tax Treatments January 1, 2019 IFRS 17 – Insurance Contracts January 1, 2021 Amendments to IFRS 9 – Prepayment Features with Negative Compensation January 1, 2019 Amendments to IAS 28 – Long-term Interests in Associates and Joint Ventures January 1, 2019 IFRS Annual Improvements 2015-2017 Cycle January 1, 2019 Amendments to IAS 19 – Compensation Plan Amendment, Curtailment or Settlement January 1, 2019 Subject to adoption by the European Union. (1) The Group is currently analysing the potential impacts of IFRIC 23 and IFRS 17. It does not expect the application of the other standards, amendments or interpretations to have a material impact on its Consolidated Financial Statements. Use of estimates and judgement 1.3 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. In addition to using estimates, Group management is required to exercise judgement when determining the appropriate accounting treatment of certain transactions and activities and how it should be applied. The main estimates and judgements applied for the preparation of these Consolidated Financial Statements concern: useful lives of operating assets (Note 6); ● definition of cash-generating units (CGUs) for the purpose of ● impairment tests on non-current assets other than goodwill (Note 6.3); recoverable amount of goodwill, other intangible assets and ● property and equipment (Note 6.3); fair value of identifiable assets acquired and liabilities assumed in ● business combinations (Note 3.1); measurement of rebates and commercial income (Note 5.2.1); ● classification of leases (Notes 6.2 and 6.5); ● measurement of provisions for contingencies and other ● business-related provisions (Note 9); determination of the level of control or influence exercised by ● the Group over investees (Notes 3 and 7); assumptions used to calculate pension and other ● post-employment benefit obligations (Note 10.1); recognition of deferred tax assets and some tax credits (Note 8). ● Measurement methods 1.4 The Consolidated Financial Statements have been prepared using the historical cost convention, except for: certain financial assets and liabilities measured using the fair ● value model (Note 12); assets acquired and liabilities assumed in business combinations, ● measured using the fair value model (Note 3.1); non-current assets held for sale, measured at the lower of ● carrying amount and fair value less costs to sell. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Based on the hierarchy defined in IFRS 13 – Fair Value Measurement, fair value may be measured using the following inputs: Level 1 inputs: unadjusted quoted prices in active markets for ● identical assets or liabilities that the entity can access at the measurement date; Level 2 inputs: models that use inputs that are observable for the ● asset or liability, either directly (i.e., prices) or indirectly (i.e., price-based data); Level 3 inputs: inputs that are intrinsic to the asset or liability and ● are not based on observable market data for the asset or liability.