2011 Annual report - touax group

Annual report 2011
➜ note 1.15. Share-based payments
IFRS 2 “Share-based Payment”, which applies to schemes
granted after November 7 2002, requires transactions paid for
in shares or similar instruments to be valued in the company
income statement and balance sheet. The three possible types
of transactions specified in IFRS 2 are:
• Share-based transactions settled in equity instruments;
• Share-based transactions settled in cash;
• Share-based transactions settled in equity instruments or in
cash.
Share-based staff benefits are booked under staff costs and spread
over the acquisition period of the entitlements; a counter-entry
is made in the form of an increase in shareholders’ equity.
➜ note 1.16. Long-term non-current liabilities
In the Shipping Containers division, initial commissions received
by the Group on the first sales of containers to the TLR 2001
Trust were used to set up collateral deposits and liquidity
reserves which will not be recoverable until the Trust is wound
up. These deposits and reserves are intended, in particular,
to enable the Trust to cover debt service payments should
the net income distributed to the Trust by the Group prove
insufficient (see the notes to the consolidated financial statements,
note 1.5, note 30.1, note 30.2 and note 30.3).
Only when the Group is in a position to recover these collateral
deposits and liquidity reserves will the economic benefit of
these initial commissions materialize as probable. Under such
circumstances, these initial commissions bound up in collateral
deposits and liquidity reserves are treated as deferred in
accordance with IAS 18 Revenue Recognition, and booked
under non-current long-term liabilities, until recovery of those
collateral deposits and liquidity reserves becomes probable.
All this deferred income was reversed for a total of €3.6 million
in 2006 and €2.1 million in 2009.
Other long-term liabilities also concern those portions of
liabilities other than borrowings and financial debts which are
due in over a year, such as commercial commitments on
contracts with a repurchase agreement by the Group, as well
as leasing income deferred for more than one year, over the
duration of the contract.
➜ note 1.17. Treasury shares
The treasury stock held by the Group is registered at its acquisition
cost as a deduction from shareholders’ equity. Gains from the
disposal of treasury stock are stated directly as an increase in
shareholders’ equity, such that capital gains or losses do not
affect the consolidated result.
➜ note 1.18. Financial instruments
❙ note 1.18.1. Financial assets
The Group's financial assets include the following:
• non-current financial assets: guarantees and other deposits for
the most part, connected with the setting up of the TLR 2001
Trust (see the notes to the consolidated financial statements,
note 1.5 and note 1.16), equity interests in non-consolidated
companies, loans,
• current financial assets including trade receivables and other
operating receivables, as well as cash and cash equivalents
(negotiable securities).
Financial assets are valued on the balance sheet date in
accordance with their classification under IAS 39.
❙ Financial assets whose changes in fair value are
booked in the income statement:
Negotiable securities are valued at their fair value on the
Balance Sheet date, and changes in their fair value are booked
to net financial revenue: they are not, therefore, tested for
impairment. Fair values are determined in most cases by reference
to listed market prices.
❙ Loans and receivables
For the Group, this category includes:
• long term loans,
• trade receivables and other operating credits.
These financial assets are valued at cost, amortized using the
“effective interest rate” method.
❙ Assets held to maturity
These are fixed-maturity non-derivative financial assets with
both fixed or calculable yield and which the firm intends and is
able to keep until they mature. These assets do not include
loans and receivables, nor those financial assets classified
under the two other categories (assets with changes in fair
value booked to the income statement, or assets available for
sale).
These financial assets are valued at cost, amortized using the
effective interest rate method.
❙ Assets available for sale
This covers assets that do not fall into any of the above
categories. They are valued at fair value—changes in fair value
are booked under shareholders’ equity until they are actually
sold. Among other things, this category includes shareholdings
in non-consolidated firms. In the case of listed securities, the
fair value is the market price. If the fair value cannot be reliably
ascertained, the securities are carried at their historic cost.
On each balance sheet date, the fair value of financial assets
available for sale is determined and entered among assets.
If there is any objective indication of a loss of value (significant
and lasting impairment), then an irreversible write-down is
booked to the income statement and not restored there (if at
all) until the securities are sold.
❙ Impairment testing of financial assets
All assets valued at amortized cost and assets available for
sale must undergo an impairment test at the end of each
financial period, whenever there is any indication that they
may have lost value.
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