FINANCIAL REPORT 2012 - Keolis

28 2. CONSOLIDATED FINANCIAL STATEMENTS
employment benefits resulting from experience and changes
in actuarial assumptions are recognised directly in equity in the
year in which they are incurred and are offset against the
increase or decrease of the obligation. They are set out in the
statement of comprehensive income.
In the income statement, the cost of service earned during
the financial year is included in the operating profit. The
amortisation of past service cost not yet recognised as well
as the impact of the reduction or liquidation of schemes are
accounted for in operating profit.
The interest cost in respect of the discounting of pensions and
similar obligations, and the income relating to the expected
yields from the pension plan assets, are recognised under
financial income and expense.
The actuarial calculations for pension and similar commitments
are mainly performed by independent actuaries.
Long service medals are valued on the same basis as pension
commitments, with the exception of the recognition of actuarial
gains and losses. Actuarial gains and losses are recognised
in the income statement.
Other types of provisions
Provisions are accrued where at the end of the reporting
period there is a present legal or implicit obligation towards
third parties arising from a past event and there is a probability
that an outflow of resources embodying economic benefits
will be required to settle this obligation and a reliable
estimate can be made of the amount.
In the context of its activity, the Keolis S.A. Group is generally
subject to a contractual obligation to maintain and repair facilities
managed under a public service agreement. The resulting
maintenance and repair costs are analysed in accordance with
IAS 37 on provisions and, where applicable, provisions are
accrued for major repairs or even for lossmaking contracts in
the event that the unavoidable costs incurred to meet the
contractual obligation are greater than the economic benefits
of the contract.
In cases of restructuring, an obligation is accrued in so far as
the restructuring has been announced and is the object of a
detailed formalised plan or has been started prior to the
reporting date.
Provisions due in more than one year are discounted whenever
the impact is material.
2.4.18. Payments in shares and similar payments
The Keolis S.A. Group has no share option plans or share
purchase warrants for the benefit of its members of staff.
2.4.19. Trade payables and other accounts payable
Trade payables and other accounts payable are measured at
their fair value at initial recognition, which in most cases is their
nominal value, and thereafter at the amortised cost. Short-term
payables are recognised at their nominal amount unless discounting
at the market rate would have a material impact.
In the event of long payment delays, the suppliers’ debt is discounted.
Other payables include deferred revenues, corresponding to
income received for services not yet provided, and investment
grants not yet posted in the income statement.
2.4.20. Revenue and other business income
Revenue and other business-related income are measured at
the fair value of the consideration received or accrued. They
are measured net of discounts and commercial benefits
given, where the service has been provided. No income is
recognised where there exists significant uncertainty as to
the recoverability of the consideration receivable or the costs
incurred or to be incurred in relation to the service, and where
the Group remains involved in managing the income.
The revenue from urban passenger transport companies is
recognised according to the terms of the contract signed
with the public transport authority, taking account of all
additional clauses and any vested rights (indexation clauses,
etc).
The same applies for revenue from intercity passenger transport
companies, and other activities not under contract, recognised
according to the services provided.
Revenues include fees from value added services from the
knowhow of the Keolis S.A. Group. These activities (excluding
transportation) include the management of railway stations,
airports, travel agencies and bike rental.
Other business-related income covers fees for services consisting
mainly of revenues classified by the Group as incidental,
as well as the remuneration of concession financial assets.
2.4.21. Other operating expenses
Since they are a recurrent feature of the activity, losses or gains
on sales of transport equipment are recognised on a separate
line, and included in profit from continuing operations.
2.4.22. Income from continuing operations
Income from continuing operations corresponds to the
whole of the expenses and income arising from the Group’s
recurring operating activity before financing activities, the
earnings of associates, activities discontinued or being sold
and taxation.
2.4.23. Operating profit or loss
Operating profit includes income from continuing operations
and all transactions not directly related to the normal conduct
of business, but that cannot be directly attached to any other
item in the income statement.