ACCOUNTING RULES AND METHODS
NOTE 2.1 CURRENT ACCOUNTING STANDARDS AND INTERPRETATIONS
The consolidated ﬁnancial statements are compliant with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board as adopted within the European Union, and available for consultation on the European Commission website: http://ec.europa.eu/ﬁnance/accounting/ias/index_en.htm. The consolidated ﬁnancial statements at December 31, 2014 have been prepared in accordance with the same rules and methods as those applied in the preparation of the 2013 ﬁnancial statements. They have been prepared under the responsibility of the Board of Directors that reviewed them at its meeting of March 3, 2015 and audited by the Statutory Auditors. The standards and interpretations adopted by the European Union as of January 1, 2014 had no impact on the Group’s ﬁnancial statements. The Group has not early adopted any standards, amendments or interpretations whose application is not required for ﬁscal years starting from January 1, 2014.
NOTE 2.2 CURRENT ASSETS AND LIABILITIES
disposal within the next twelve months after the close of the ﬁnancial year, together with cash and cash equivalents. All other assets are non-current. Current liabilities comprise debts maturing in the course of the normal operating cycle of the Group or within the next twelve months after the close of the ﬁnancial year.
NOTE 2.3 GOODWILL
Goodwill is the difference between (i) the total of the fair value of the consideration transferred and the amount of any non-controlling interest in the acquiree, and (ii) the net of the acquisition-date amounts of the identiﬁable assets acquired and the liabilities assumed. Goodwill recognized in a foreign currency is translated at the year-end exchange rate. Each goodwill is allocated to a Cash Generating Unit (CGU) deﬁned as being a sales subsidiary or group of more than one sales subsidiaries, being sufﬁciently autonomous to generate cash inﬂows independently. Taking into account expected future revenue streams, goodwill is tested for possible impairment loss at each closing date, or during the year when there is indication that it may be impaired.
NOTE 2.4 OTHER INTANGIBLE ASSETS
The Group’s consolidated ﬁnancial statements are prepared on a historical cost basis with the exception of the assets and liabilities listed below: – cash equivalents, recorded at fair value in the income statement; – loans and receivables, together with borrowings and ﬁnancial debts, trade payables and other current ﬁnancial liabilities, recognized at their amortized cost; – derivative ﬁnancial instruments, recorded at fair value. The Group uses such instruments to hedge its foreign exchange risks and recognizes them at fair value in the income statement, and to hedge interest-rate risk, and then recognizes them at fair value in other comprehensive income (see note 3 “Risk Hedging Policy”). Current assets comprise assets linked with the normal operating cycle of the Group, assets held with a view to
Intangible assets are carried at their purchase price less cumulative depreciation and impairment, if any. Depreciation is charged on a straight-line basis depending on the estimated useful life of the intangible asset. Management Information Software This item contains only software utilized for internal purposes. The information system progressively implemented in the Group subsidiaries since January 1, 2007 is amortized on a straight-line basis over eight years, corresponding to their useful life as determined by the Group for this intangible asset. Activation of costs relating to this project has been made possible by the fact that the project’s technical feasibility has been consistently demonstrated and it has been established as probable that this ﬁxed asset will generate future beneﬁts for the Group.
116 – 2014 Financial Report
Consolidated ﬁnancial statements