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Part 3 - Financial statements
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■ Amendments to IFRS 1 First Time Adoption of IFRS
– Government Loans (applicable for annual periods
beginning on or after 1 January 2013)
■ Amendments to IFRS 7 Financial Instruments:
Disclosures – Offsetting Financial Assets and
Financial Liabilities (applicable for annual periods
beginning on or after 1 January 2013)
■ Amendments to IFRS 10, IFRS 11 and IFRS 12 –
Consolidated Financial Statements, Joint Arrangements
and Disclosure of Interests in Other Entities:
Transition Guidance (applicable for annual periods
beginning on or after 1 January 2014)
■ Amendments to IAS 1 Presentation of Financial
Statements - Presentation of Items of Other
Comprehensive Income (applicable for annual
periods beginning on or after 1 January 2013)
■ Amendments to IAS 12 Income Taxes – Deferred
Tax: Recovery of Underlying Assets (applicable for
annual periods beginning on or after 1 January 2013)
■ Amendments to IAS 19 Employee Benefits
(applicable for annual periods beginning on or after
1 January 2013)
■ Amendments to IAS 27 Separate Financial
Statements (applicable for annual periods beginning
on or after 1 January 2014)
■ Amendments to IAS 28 Investments in Associates
and Joint Ventures (applicable for annual periods
beginning on or after 1 January 2014)
■ Amendments to IAS 32 Financial Instruments:
Presentation – Offsetting Financial Assets and
Financial Liabilities (applicable for annual periods
beginning on or after 1 January 2014)
Adoption of these new standards and interpretations in
subsequent years should not cause any material impact
on the consolidated financial statements.
The financial statements also include the information
prescribed by the 4th and the 7th European directive.
3.2 Conversion of Foreign Currencies Operations
Foreign currency transactions (i.e. in a currency other
than the functional currency of the entity) are recorded
at the spot exchange rate on the date of the transaction.
At each closing date, monetary assets and liabilities
denominated in foreign currencies are translated using
the closing rate. Gains and losses arising from the
settlement of foreign currency monetary items or on
their re-evaluation at the closing date are recognized in
the Income statement in the “Other operating income/
(expenses)”; and in finance costs for gains/losses
related to the financial debt.
The assets and liabilities of the Group activities whose
working currency is not the Euro are converted into
Euros at the financial year’s closing rate. Income and
charges are converted at the average rate of the period
except if the exchange rates have been subject to
major fluctuations. Resulting exchange gains and
losses are accounted for as a distinct component of
the equity. At the time of the disposal of an activity
whose working currency is not the Euro, the accumulated
deferred exchange gains and losses recorded
under the ‘Translation reserve’ heading are reversed
in the income statement.
Goodwill and other adjustments of the fair value
resulting from the acquisition of an activity whose
working currency is not the Euro are treated as assets
and liabilities of the activity and posted in accordance
with the preceding paragraph.
3.3 Consolidation Principles
The consolidated financial statements include the
financial statements of all subsidiaries, joint ventures
consolidated according to the proportionate method
and associated companies accounted for using the
equity method. The consolidated financial statements
are prepared using uniform accounting policies for
transactions and events occurring in similar circumstances.
All intra-group balances and transactions
including income, dividends and expenses are
eliminated in the consolidation.
3.3.1 Subsidiaries
Subsidiaries are companies that are directly or
indirectly controlled. Control is deemed to exist as
soon as the parent owns, directly or indirectly through
subsidiaries, more than half of the voting power of
an entity but as well as soon as it has the power to
govern the entity’s financial and operating policies in
order to obtain benefits from its activities. Consolidation
of the subsidiary companies starts as of the moment
when Hamon controls the entity until the date on
which that control ceases.
3.3.2 Joint Ventures
Entities for which the Group contractually shares
control with one or more co-contractor(s) qualify as
joint ventures. Contractual agreements of this kind
ensure that strategic financial and operating decisions
require the unanimous consent of all the co-contractors.
Proportional consolidation of the jointly controlled entities
starts as of the moment joint control is established until
the date on which it ceases.
3.3.3 Associated Companies
Associated companies are the entities over which
Hamon exerts a significant influence by taking part in
the entity’s decisions, without holding control or joint