2013-vinci-annual-report

2. Consolidation methods
2.1 Consolidation scope and methods
Companies in which the Group holds, whether directly or indirectly, the majority of voting rights in shareholders’ general meetings, in the
Board of Directors or in the equivalent management body, giving it the power to direct their operational and financial policies, are fully
consolidated.
Jointly controlled operations and assets are recognised on the basis of the Group’s share of assets, liabilities, income and expenses. This
relates mainly to construction operations carried out in partnership, in the form of consortia or undeclared partnerships, in the Contracting
business and at VINCI Immobilier.
Companies over which the Group exercises significant influence and joint ventures are accounted for under the equity method.
When determining its level of control over an entity, VINCI also analyses any instruments held by the Group or by third parties which, if
exercised, could cause the Group to obtain or lose control of the entity concerned.
VINCI’s consolidated financial statements include the financial statements of all companies with revenue of more than €2 million, and of
companies whose revenue is below this figure but whose impact on the Group’s financial statements is material.
Number of companies by reporting method
31/12/2013 31/12/2012
(number of companies) Total France Foreign Total France Foreign
Controlled companies 1,936 1,200 736 1,995 1,224 771
Equity method 172 60 112 355 58 297
Total 2,108 1,260 848 2,350 1,282 1,068
Material movements in the period concern the acquisition of the ANA group, which holds concessions in 10 airports in Portugal, and the
move to account for Aéroports de Paris under the equity method after VINCI Concessions acquired a further 4.7% stake in the company. The
other acquisitions in the period are not material and concerned mainly VINCI Energies (11 companies), VINCI Construction (10 companies),
VINCI Concessions (4 companies) and Eurovia (3 companies).
The number of entities fell by 255, resulting mainly from the fall in VINCI’s percentage stake in CFE (from 46.84% to 12.11%), leading to a loss
of control over CFE with the effect that CFE is no longer fully consolidated and is instead accounted for under the equity method.
2.2 Intragroup transactions
Reciprocal operations and transactions relating to assets and liabilities, income and expenses between companies that are consolidated or
accounted for under the equity method, are eliminated in the consolidated financial statements. This is done:
ˇˇfor the full amount if the transaction is between two controlled subsidiaries;
ˇˇapplying the percentage owned of a company accounted for under the equity method in the case of profits or losses realised between a
controlled company and a company accounted for under the equity method.
2.3 Translation of the financial statements of foreign companies and establishments
In most cases, the functional currency of companies and establishments is their local currency.
The financial statements of foreign companies of which the functional currency is different from that used in preparing the Group’s consolidated
financial statements are translated at the closing rate for balance sheet items and at the average rate for the period for income
statement items. Any resulting translation differences are recognised under other comprehensive income. Goodwill relating to foreign entities
is considered as comprising part of the assets and liabilities acquired and is therefore translated at the exchange rate in force at the balance
sheet date.
2.4 Foreign currency transactions
Transactions in foreign currency are translated into euros at the exchange rate at the transaction date. Assets and monetary liabilities
denominated in foreign currencies are translated at the closing rate. Resulting exchange gains and losses are recognised under foreign
exchange gains and losses and are shown under other financial income and other financial expense in the income statement.
Foreign exchange gains and losses arising on loans denominated in foreign currency or on foreign currency derivative instruments qualifying
as hedges of net investments in foreign subsidiaries are recorded under currency translation differences in equity.
CONSOLIDATED FINANCIAL STATEMENTS 211
2.5 Business combinations
Business combinations completed between 1 January 2004 and 31 December 2009 have been recognised applying the provisions of the
previous version of IFRS 3.
Business combinations completed from 1 January 2010 onwards have been recognised in accordance with IFRS 3 Amended. This standard
has been applied prospectively.
In application of this amended standard, the Group recognises the identifiable assets acquired and liabilities assumed at their fair value at
the dates when control was acquired. The cost of a business combination is the fair value, at the date of exchange, of the assets given, liabilities
assumed, and/or equity instruments issued by the acquirer in exchange for control of the acquiree. Contingent price adjustments are
measured at fair value at each balance sheet date. From the acquisition date, any subsequent changes to this fair value resulting from events
after control was acquired are recognised in profit or loss.