Financial Report and Registration Document 2010 - Groupe Seb

More documents

Recommendations

Info

3 NOTES CONSOLIDATED FINANCIAL STATEMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS No items of property, plant or equipment have been revalued. In accordance with IAS 17 – Leases, finance leases that transfer substantially all the risks and rewards incidental to ownership of an asset are recognised in property, plant and equipment for an amount corresponding to the lower of the fair value of the leased asset and the present value of the minimum lease payments. A liability for the same amount is recorded under “Finance lease liabilities”. 1.4.3. Impairment of long-lived assets Under IAS 36 – Impairment of Assets, the recoverable amount of property, plant and equipment and intangible assets must be measured at each period-end or whenever there is an indication that the asset may be impaired. Assets with an indefinite life – corresponding in the case of Groupe SEB to goodwill and trademarks – are tested for impairment at least once a year. Assets with a finite life are tested whenever events or circumstances indicate that their carrying amount may not be recovered. Impairment tests are performed at the level of each Cash-Generating Unit (CGU). A CGU is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The fair value of CGUs is determined by the discounted cash fl ows method. An impairment loss is recognised for any excess of an asset’s carrying amount over its recoverable amount. Recoverable amount corresponds to the higher of the asset’s fair value less costs to sell and its value in use. The impairment loss is allocated to reduce the carrying amount of goodwill and then ratably to the other assets of the CGU based on their respective carrying amounts. The capitalised amount of development projects in progress is also tested for impairment. Impairment losses on CGUs and on assets with an indefinite useful life are recorded in “Other operating expense”. At Groupe SEB, CGUs correspond to individual production sites, broken down where appropriate by product family. The assets allocated to each CGU correspond mainly to tooling and other manufacturing assets (primarily buildings and machinery). Marketing subsidiaries and integrated manufacturing and sales entities are each treated as separate CGUs, but marketing subsidiaries that share resources are combined in a single CGU. Provisions for impairment of non-fi nancial assets other than goodwill are reviewed at each annual and interim period-end and adjusted as necessary. 1.4.4. Financial instruments Financial instruments are accounted for in accordance with IAS 39 – Financial Instruments: Recognition and Measurement. Financial assets and liabilities are recognised in the balance sheet when the Group becomes a party to the contractual provisions of the instrument. They are initially recognised at cost, corresponding to the fair value of the consideration paid or received plus external transaction costs that are directly attributable to the acquisition or issue of the fi nancial asset or financial liability. A) FINANCIAL ASSETS Financial assets consist of shares in subsidiaries and affiliates, as well as operating receivables, debt securities and other cash equivalents classified as current assets. Available-for-sale financial assets are assets that are intended to be held for an indefi nite period but which may be sold in response to changes in market interest rates or liquidity needs. They comprise investments in non-consolidated companies. At each period-end, they are measured at fair value and the resulting unrealised gain or loss is recognised directly in equity. When the assets are sold or there is objective evidence of impairment, the cumulative gains and losses previously recognised in equity are reclassified to profit. Held-to-maturity investments are financial assets with a fixed maturity that the Group has the positive intention and ability to hold to maturity. They are measured at amortised cost, determined by the effective interest method. B) FINANCIAL LIABILITIES Financial liabilities comprise borrowings and other financing, including bank overdrafts, and operating liabilities. Borrowings and other financial liabilities are measured at amortised cost, determined by the effective interest method. When interest rate risks on financial liabilities are hedged by swaps qualifying as cash flow hedges, the swaps are also recognised in the balance sheet at fair value. The effective portion of changes in their fair value is recognised directly in equity and the ineffective portion is recognised in profit. C) DERIVATIVE INSTRUMENTS Market risks (interest rate, currency and commodity price risks) are hedged, generally through the use of derivative instruments. In accordance with IAS 32 and IAS 39, derivative instruments are measured at fair value. The accounting treatment of changes in fair value depends on the future use of the derivative and the resulting accounting classification. Derivative instruments designated as the hedging instrument in a hedging relationship may be classified as either fair value or cash flow hedges. a fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment that is attributable to a particular risk and could affect profit; a cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and could affect profit. The gain or loss arising from remeasurement at fair value of derivative instruments designated as fair value hedges is recognised in profit, offsetting all or part of the gain or loss recognised on the hedged item. In the case of cash fl ow hedges, the effective portion of the gain or loss arising from remeasurement of the derivative instrument at fair value is recognised in equity and the ineffective portion is recognised in profi t. The cumulative gains and losses on cash flow hedges recognised directly in equity are reclassified into profit when the hedged item affects profit. Hedge accounting is applied when: the hedging relationship is formally designated and documented at the inception of the hedge; the hedge is expected to be highly effective and is determined actually to have been highly effective throughout the financial reporting periods for which it was designated. 70 FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010 GROUPE SEB
3 CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS At the inception of each hedge, the hedging relationship is formally documented, specifying in particular the Group’s risk management objective and strategy for undertaking the hedge. The initial documentation also includes details of how the Group will assess the hedging instrument’s effectiveness. In subsequent periods, the hedging instrument’s actual effectiveness in offsetting the exposure to changes in the hedged item’s fair value is also fully documented. Hedge accounting is discontinued prospectively when the derivative instrument ceases to be a highly effective hedge or when it expires or is sold, terminated or exercised. Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognised in profit. 1.4.5. Inventories Raw materials and goods purchased for resale are measured at purchase cost, using the weighted average cost method. Work-in-progress and finished products are measured at cost, including raw materials and labour and a portion of direct and indirect production costs. In accordance with IAS 2, inventories are measured at the lower of cost, determined as explained above, and net realisable value. Net realisable value corresponds to the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale (mainly distribution costs). The carrying amount of inventories does not include any borrowing costs. 1.4.6. Trade receivables Trade receivables are measured at the lower of their nominal amount – which approximates fair value due to their short maturity – and their estimated net realisable value. Provisions for impairment are determined on the basis of the age of the receivables, taking into account any identified recovery risks. 1.4.7. Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand and short-term investments in money market instruments. These instruments have maturities of less than three months; they are readily convertible into known amounts of cash and are not exposed to any material price risk. The consolidated statement of cash flows is presented using the indirect method and cash fl ows are analysed between operating, investing and financing activities. IAS 7 has been amended following the publication of IAS 27R. The aggregate cash flows arising from obtaining or losing control of a subsidiary are classifi ed as investing activities while cash fl ows arising from changes in ownership interests in a fully consolidated subsidiary are classifi ed as financing activities. Transactions with jointly controlled entities or entities accounted for by the equity method continue to be classified as investing activities. 1.4.8. Treasury stock Treasury stock is deducted from equity at cost. Any gains or losses arising from the purchase, sale, issue or cancellation of treasury stock are recognised directly in equity without affecting profit. 1.4.9. Income taxes Income tax expense reported in the income statement corresponds to current tax for the period and changes in deferred taxes. In accordance with IAS 12 – Income Taxes, deferred taxes are recognised for temporary differences between the carrying amounts of assets and liabilities and their tax base. They are determined using tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. Temporary differences include: a) taxable temporary differences, which are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled; and b) deductible temporary differences, which are temporary differences that will result in amounts that are deductible in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled. Deferred tax assets are recognised for deductible temporary differences and tax loss carryforwards to the extent that it is probable that future taxable profits will be available against which they can be utilised. Previously unrecognised deferred tax assets at the date of a business combination or during the twelve-month fair value measurement period are subsequently recognised as an adjustment to profit or loss provided they meet the recognition criteria. In accordance with IAS 12, deferred tax assets and liabilities are not discounted. 1.4.10. Employee benefits A) PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS In some countries, the Group is required to pay length-of-service awards to employees on retirement or pension benefits under formal pension plans. The Group also pays contributions to government-sponsored pension schemes in its various host countries. The accounting treatment of these pension and other post-employment benefit plans depends on the type of plan, as follows: Defined contribution plans Contributions to these plans are recognised as an expense for the period to which they relate. Defined benefit plans In accordance with IAS 19 – Employee Benefits, obligations under defined benefit plans are calculated annually by qualified actuaries using the projected unit credit method based on final salaries. The projected unit credit method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation, which is then discounted. The actuarial assumptions used to calculate the obligation include staff turnover rates, mortality rates, the discount rate and the expected retirement age. The assumptions vary according to local laws and regulations in the host countries concerned. 3 GROUPE SEB FINANCIAL REPORT AND REGISTRATION DOCUMENT 2010 71
Page 1 and 2:
FINANCIAL REPORT AND REGISTRATION D
Page 3 and 4:
GROUP PROFILE AND KEY FIGURES 2010
Page 5 and 6:
GROUPE SEB IN 2010 1 GROUPE SEB IN
Page 7 and 8:
1 GROUPE SEB IN 2010 MILESTONES IN
Page 9 and 10:
1 GROUPE SEB IN 2010 BUSINESS SECTO
Page 11 and 12:
1 GROUPE SEB IN 2010 INDUSTRIAL STR
Page 13 and 14:
1 GROUPE SEB IN 2010 MANAGEMENT REP
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22: 1 GROUPE SEB IN 2010 RISK MANAGEMEN
Page 29 and 30: 1 GROUPE SEB IN 2010 SOCIAL PERFORM
Page 35 and 36: 1 GROUPE SEB IN 2010 ENVIRONMENT PE
Page 37 and 38: CORPORATE GOVERNANCE 2 CORPORATE GO
Page 39 and 40: 2 CORPORATE GOVERNANCE BOARD OF DIR
Page 45 and 46: 2 CORPORATE GOVERNANCE ORGANIZATION
Page 47 and 48: 2 CORPORATE GOVERNANCE GROUP MANAGE
Page 53 and 54: 2 CORPORATE GOVERNANCE CHAIRMAN’S
Page 59 and 60: 2 CORPORATE GOVERNANCE STATUTORY AU
Page 61 and 62: CONSOLIDATED FINANCIAL STATEMENTS 3
Page 63 and 64: 3 CONSOLIDATED FINANCIAL STATEMENTS
Page 71: 3 CONSOLIDATED FINANCIAL STATEMENTS
Page 119 and 120: COMPANY FINANCIAL STATEMENTS 4 COMP
Page 121 and 122: 4 COMPANY FINANCIAL STATEMENTS BALA
Page 123 and 124:
4 COMPANY FINANCIAL STATEMENTS REPO
Page 125 and 126:
4 COMPANY FINANCIAL STATEMENTS NOTE
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
4 COMPANY FINANCIAL STATEMENTS AUDI
Page 137 and 138:
ANNUAL GENERAL MEETING 5 ANNUAL GEN
Page 139 and 140:
5 ANNUAL GENERAL MEETING REPORT OF
Page 141 and 142:
5 ANNUAL GENERAL MEETING AUDITORS
Page 143 and 144:
5 ANNUAL GENERAL MEETING PROPOSED R
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
ADDITIONAL INFORMATION 6 ADDITIONAL
Page 151 and 152:
6 ADDITIONAL INFORMATION GENERAL IN
Page 153 and 154:
6 ADDITIONAL INFORMATION SHARE CAPI
Page 155 and 156:
6 ADDITIONAL INFORMATION SHARE CAPI
Page 157 and 158:
6 ADDITIONAL INFORMATION FINANCIAL
Page 159 and 160:
6 ADDITIONAL INFORMATION EMPLOYEE S
Page 161 and 162:
6 ADDITIONAL INFORMATION EMPLOYEE S
Page 163 and 164:
6 ADDITIONAL INFORMATION STOCK MARK
Page 165 and 166:
NOTES GROUPE SEB FINANCIAL REPORT A
Page 167 and 168:
FINANCIAL AGENDA 2011 26 APRIL AFTE
show all

Financial Report and Registration Document 2010 - Groupe Seb

Create successful ePaper yourself

Delete template?

Save as template?