DANONE - Registration document 2015

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4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Accounting principles
DANONE REGISTRATION DOCUMENT 2015 81
NOTE 1. ACCOUNTING PRINCIPLES
Note 1.1. Basis for preparation
The consolidated financial statements of Danone (the “Company”),
its subsidiaries and associates (together, the “Group”) as of and
for the year ended December 31, 2015 were approved by Danone's
Board of Directors on February 22, 2016 and will be submitted for
approval to the Shareholders' Meeting on April 28, 2016.
The consolidated financial statements and the Notes to the consoli-
dated financial statements are presented in euros. Unless indicated
otherwise, amounts are expressed in millions of euros and rounded
to the nearest million. Generally speaking, the values presented
are rounded to the nearest unit. Consequently, the sum of the
rounded amounts may differ, albeit to an insignificant extent, from
the reported total. In addition, ratios and variances are calculated
on the basis of the underlying amounts and not on the basis of the
rounded amounts.
The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported
amounts in the consolidated balance sheet, consolidated income statement and Notes to the consolidated financial statements. The main
such estimates and assumptions relate to:
Notes
Measurement of intangible assets 9.3
Measurement of investments in associates 4.1, 4.4, 4.7
Measurement of deferred tax assets 8.3
Recognition of liabilities related to put options granted to non-controlling interests 1.2, 3.1, 3.6
Determination of the amount of provisions for risks and charges 14.1, 14.2, 14.3
Determination of the amount of rebates, trade supports and other deductions relating to agreements
with customers 5.1
These assumptions, estimates and appraisals aremade on the basis
of available information and conditions at the end of the financial
period presented. Actual amounts may differ from those estimates,
particularly in a climate of economic and financial volatility.
In addition to the use of estimates, Danone's management uses its
judgment to define the accounting treatment for certain activities
and transactions, when they are not explicitly addressed in IFRS and
related interpretations, particularly in the case of the recognition
of put options granted to non-controlling interests.
Note 1.2. Accounting framework applied
The Group's consolidated financial statements have been prepa-
red in accordance with IFRS (International Financial Reporting
Standards) as adopted by the European Union, which are available
on the website of the European Commission
internal_market/accounting/ias/index_en.htm).
Main standards, amendments and interpretations
whose application is mandatory as of January 1, 2015
• IFRIC 21, Levies;
This interpretation does not have a material impact on the consoli-
dated financial statements for the year ended December 31, 2015.
Main standards, amendments and interpretations
published by the IASB whose application
is not mandatory within the European Union
as of January 1, 2015
The Group did not exercise the option to apply these standards,
amendments and interpretations in advance to the consolidated
financial statements for the year ended December 31, 2015 and
does not expect them to have a material impact on its results and
financial position.
Main standards, amendments and interpretations
published by the IASB but not yet adopted by the
European Union
• IFRS 15, Revenue from Contracts with Customers;
• IFRS 16, Leases;
• IFRS 9, Financial Instruments.
The Group is currently assessing the impact of these standards and
amendments on its results and financial position.
Other standards
The Group is closely monitoring the economic conditions that
could, in 2016, result in Argentina being qualified as a hyperinfla-
tionary economy, with the result that IAS 29 Financial Reporting in
Hyperinflationary Economies would become applicable. This standard
would require the balance sheets and net income of the subsidiaries
concerned to be (i) restated to reflect the changes in the general
purchasing power of the local currency by using official inflation
rate indices applicable at the end of the reporting period, and (ii)
translated into euros at the exchange rate ruling at the end of the
reporting period.
Other IASB and IFRIC projects
The Group is also closely monitoring the work of the IASB and the
IFRIC, which could lead to a revision of the treatment of put options
granted to non-controlling interests