Annual report 2008 - Altarea Cogedim

CONSOLIDATED FINANCIAL STATEMENTS
7.30. Cash flow statement
The cash flow statement is presented using the indirect
method permitted under IAS 7. Tax expense is shown as a
single item in cash flows from operating activities. Dividends
received from associates are classified as cash flows from
operating activities. Interest paid is shown in cash flows
from financing activities, and interest received is shown
in cash flows from investing activities. Dividends paid are
classified as cash flows from financing activities.
7.31. Operating Segments (IFRS 8)
IFRS 8 “Operating Segments” requires the presentation of
information for operating segments, chosen to conform to
the Group’s organisation and its internal reporting system,
that is presented according to IFRS recognition and
measurement principles. Operating segments as defined
in the standard are those that are reviewed by the Group’s
Management on a regular basis and for which separate
financial reporting is available.
The internal reporting system is based on the operating
segments described below. Segment reporting is presented
according to two analytical axes:
– Recurring Profit;
– Non-Recurring Profit and Net Asset Value.
Each segment receives services provided internally within
the Group. The cost of these services is charged to each
of the segments and recorded in overhead costs. As a
consequence, no inter-segment services are presented.
Reconciliation items make it possible to reconcile these
reporting figures with the Group’s IFRS income statement
and balance sheet.
1. Recurring activities
These measure the creation of wealth available for
distribution from Recurring Profit.
The two operating segments that constitute recurring
activities are:
(a) the owned shopping centre business;
(b) the property development for third parties business.
These are the segments used in the Group’s financial
reporting.
The indicators used to monitor each of these segments are:
(a) the owned shopping centre business: net rental income,
operating profit (including net overhead costs as described
in note 11.3) and net recurring profit (including the net
cost of debt)
In France, the owned property business enjoys SIIC tax status.
(b) the property development for third parties business: net
property income, operating profit (including net overhead
costs as described in note 11.3) and net recurring profit
(including the net cost of debt and income taxes)
2. Non-recurring activities
These measure the value created by the Group during the
period.
The relevant indicator for monitoring value is the change in
net asset value inclusive of transfer taxes, which gives rise to
Non-Recurring Profit. The NAV presented is a going-concern
NAV after tax on unrealised capital gains. This indicator is
presented in detail in the business review.
The change in NAV is reconciled with the income statement
as follows:
Prior year NAV
+ Non-Recurring Profit
+ Recurring Profit
– Dividend payout
+ Capital increase
– Other reconciliation items
= Current year NAV
Non-recurring activities are monitored as an operating
segment and by means of stand-alone items in the
reconciliation of operating segment results with the Group’s
income statement:
(a) The own-account shopping centre development
operating segment accounts for all of the non-capitalised
development costs.
(b) The other items of a non-recurring nature taken into
account in the reconciliation with the Group-wide
income statement consist mainly of the change in
value of investment properties – the main indicator of
portfolio value creation for the period – amortisation and
impairment of the customer relationships acquired with
the Cogedim purchase, impairments of the inventory of
new transactions, the change in value of derivatives,
the effect of discounting receivables and payables, the
cost of the stock grant plan implemented following the
acquisition of Cogedim (the cost of which depends on
actual performance against the business plan presented
by the management of that company when it was
acquired) and the cost of the first demand guarantee on
acquisition debt guaranteed by the shareholders.
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