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4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 4. Associates
DANONE
REGISTRATION DOCUMENT 2015
87
Change in the carrying amount
(in € millions)
2014
2015
As of January 1
3,244
2,558
New options and options recognized previously
in accordance with IAS 39
−
207
Options exercised
(a)
(341)
(1,851)
Changes in the present value of the option strike price
of outstanding options
(345)
(52)
As of December 31
2,558
862
(a) Carrying amount on the balance sheet date of the preceding fiscal year.
Main characteristics
As of December 31
2014
2015
(in € millions)
Notes
Current
Non-
current
Total
Current
Non-
current
Total
Start of
exercise
period
Price
calculation
formula
Danone Spain
3.4
794
236
1,030
234
−
234
At any
time
Average
earnings
multiple
over
several
years
Danone-Unimilk group
3.3
912
−
912
−
−
−
2014
Earnings
multiple
with floor
price
Other
(a)
503
113
616
380
248
628
As from
2015
Total
2,209
349
2,558
614
248
862
(a) Several put options with an individual amount less than or equal to €200 million as of December 31, 2015.
NOTE 4. ASSOCIATES
Note 4.1. Accounting principles
Accounting treatment
All companies in which the Group exercises a significant influence,
directly or indirectly, are accounted for using the equity method.
Under this method, the Group recognizes in the carrying amount
of the shares held in the associated or jointly-controlled entity the
acquisition-related cost of the shares adjusted by its proportionate
share of changes in the entity's net assets since its acquisition.
On the acquisition of investments accounted for using the equity
method, the acquisition price of the shares is allocated on a fair value
basis to the identifiable assets acquired and liabilities assumed. The
difference between the acquisition price and the Group's share in the
fair value of the assets acquired and liabilities assumed represents
goodwill, which is added to the carrying amount of the shares.
The main components of Net income of associates are:
•
the Group's share of the profits or losses of its associates, cal-
culated on the basis of estimates;
•
gains or losses on disposals of shareholdings in associates;
•
revaluation reserve resulting from a loss of influence where
there is no disposal of shares;
•
impairment of investments in associates.
Impairment review
•
The Group reviews the measurement of its investments in asso-
ciates when events or circumstances indicate that impairment is
likely to have occurred. With regard to listed shares, a significant
or prolonged fall in their stock price below their historical stock
price constitutes an indication of impairment.
•
An impairment provision is recognized within Share of profit of
associates when the recoverable amount of the investment falls
below its carrying amount. This impairment provision may be
reversed if the recoverable amount subsequently exceeds the
carrying amount, up to the limit of the share of the equity held
by the Group.