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2011 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements of Esker Group at December 31, 2011 were adopted by the Executive
Board and submitted for approval to the Supervisory Board on March 22, 2012.
1. Significant accounting policies, basis of consolidation
• Statement of compliance
The consolidated financial statements were presented on the basis of French law and French GAAP and notably
the accounting policies set out in Regulation 99-02 of April 29, 1999 on the French General Chart of Accounts
(Plan Comptable Général) of France's Accounting Regulations Committee (Comité de Reglementation Comptable
or "CRC") and the subsequent updates resulting from CRC Regulations 2005-05 and 2000-06
Also applied were CRC Regulation 2004-06 of November 23, 2004 on the definition, recognition and
measurement of assets and CRC Regulation 2002-10 of December 12, 2002 on the depreciation, amortization
and impairment of assets.
The consolidated financial statements of the previous year were prepared in accordance with IFRS as adopted by
the European Union. These financial statements have in consequence been restated in accordance with CRC
Regulation 99-02 for reasons of comparability (cf. note 24).
• Basis of consolidation
Companies in which the Group directly or indirectly exercises exclusive control are fully consolidated. Exclusive
control is defined as an ability to exercise directly or indirectly authority in managing the financial and operating
policies of a company so as to obtain benefits from its activities.
Equity interests in companies in which Esker Group does not have a controlling interest but exercises a material
influence are recognized according to the equity method.
Intercompany receivables, payables, income and expenses of fully consolidated subsidiaries are eliminated.
The list of subsidiaries and associates included in the consolidation scope is presented in section 2 of these notes
• Foreign currency translation methods
Income statement items of foreign companies outside the euro zone are translated at the average rate for the
period and balance sheet accounts are translated at the corresponding year-end rate. Currency translation
differences are presented as a distinct line item under equity.
• Preferred methods
The following preferred methods have been applied:
- Recognition of pension liabilities and other employee benefits;
- Restatement of finance leases;
- Capitalization of development expenditures;
- Recognition of unrealized losses and gains on foreign exchange under expenses and income of the
period.
• Use of estimates
In preparing the financial statements, management has recourse to estimates and assumptions that have an
impact on the financial statements.
The main Management estimations concern assumptions relating to:
• The measurement and depreciation of property, plant and equipment and intangible assets (notes 2, 3);
• The calculation of deferred taxes (note 17);
• The measurement of retirement commitments (note 10);
• The measurement of provisions (note 10).
These estimations are based on the best information available to management on the closing date.
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