Richemont is one of the world's leading luxury - Alle jaarverslagen

More documents

Recommendations

Info

Notes to the consolidated financial statements continued2.5. Property, plant and equipmentLand and buildings comprise mainly factories, retail boutiques and offices.All property, plant and equipment is shown at cost less subsequentdepreciation and impairment, except for land, which is shown at costless impairment. Cost includes expenditure that is directly attributableto the acquisition of the items.Subsequent costs are included in the asset’s carrying amount orrecognised as a separate asset, as appropriate, only when it isprobable that future economic benefits associated with the item willflow to the Group and the cost of the item can be measured reliably.All other repair and maintenance costs are charged to the incomestatement during the financial period in which they are incurred.Depreciation on property, plant and equipment is calculated using thestraight-line method to allocate the cost of each asset to its residualvalue over its estimated useful life, up to the limits, as follows:• Buildings• Plant and machinery• Fixtures, fittings, tools and equipmentLand and assets under construction are not depreciated.50 years20 years15 yearsThe assets’ residual values and useful lives are reviewed annually,and adjusted if appropriate.Gains and losses on disposals are determined by comparing proceedswith carrying amounts and are included in the income statement.Borrowing costs incurred for the construction of any qualifying assetsare capitalised during the period of time that is required to completeand prepare the asset for its intended use. Other borrowing costsare expensed.2.6. Intangible assets(a) GoodwillGoodwill represents the excess of the cost of an acquisition overthe fair value of the Group’s share of the identifiable net assets ofthe acquired subsidiary or associate at the date of acquisition.Goodwill arising on acquisition of subsidiaries is included in intangibleassets. Goodwill on acquisition of associated undertakings is includedin the carrying value of the investment in the associated company.Goodwill arising from subsidiaries is tested annually for impairmentand carried at cost less accumulated impairment losses. Gains andlosses on the disposal of a subsidiary include the carrying amountof goodwill relating to the entity sold.Goodwill is allocated to cash-generating units for the purpose ofimpairment testing. The cash-generating units represent the Group’sinvestments in assets grouped at the lowest levels for which there areseparately identifiable cash flows.(b) Computer software and related licencesCosts that are directly associated with developing, implementing orimproving identifiable software products having an expected benefitbeyond one year are recognised as intangible assets and amortisedusing the straight-line method over their useful lives, not exceedinga period of 15 years. Licences are amortised over their contractuallives. Costs associated with evaluating or maintaining computersoftware are expensed as incurred.(c) Research and development, patents and trademarksResearch expenditures are recognised as an expense as incurred. Costsincurred on development projects are recognised as intangible assetswhen it is probable that the project will be a success, considering itscommercial and technological feasibility, and costs can be measuredreliably. Other development expenditures are recognised as an expenseas incurred. Development costs previously recognised as an expense arenot recognised as an asset in a subsequent period. Development coststhat have a finite useful life and that have been capitalised are amortisedfrom the commencement of commercial production of the product onthe straight-line method over the period of its expected benefit.(d) Leasehold rights and key moneyPremiums paid to parties other than the lessor at the inception ofoperating leases for leasehold buildings are capitalised and amortisedover their expected useful lives or, if shorter, the lease period.2.7. Impairment of assetsAssets that have an indefinite useful life are not subject to amortisationand are tested annually for impairment. The Group has identifiedgoodwill as the only category of asset with an indefinite life.All other fixed and financial assets are tested for impairment wheneverevents or changes in circumstance indicate that the carrying amountmay not be fully recoverable.An impairment loss is recognised for the amount by which an asset’scarrying amount exceeds its recoverable amount. The recoverableamount is the higher of an asset’s fair value, less costs to sell, andits value in use. For the purposes of assessing impairment, assets aregrouped at the lowest levels for which there are separately identifiablecash flows.2.8. Other financial asset investmentsThe Group classifies its investments in the following categories:financial assets held at fair value through profit or loss, loans andreceivables and held-to-maturity investments. The classification dependson the purpose for which the investment was acquired. Managementdetermines the classification of its investments at initial recognition.(a) Financial assets held at fair value through profit or lossThis category has two sub-categories: financial assets held for trading,and those designated at fair value through profit or loss at initialrecognition. A financial asset is classified in this category if acquiredprincipally for the purpose of selling in the short term or if so designatedby management. Derivatives are categorised as held for trading. Assetsin this category are classified as current if they are either held fortrading or are expected to be realised within the next twelve months.Purchases and sales of these financial assets are recognised on thetransaction date. They are initially recognised at cost excludingtransaction costs, which represents fair value. Fair value adjustmentsare included in the income statement in the period in which they arise.Financial assets are de-recognised when the rights to receive cash flowsfrom the investments have expired or have been transferred and theGroup has transferred substantially all risk and rewards of ownership.62 Richemont Annual Report and Accounts 2009Consolidated financial statements
The fair values of quoted investments are based on current bid prices.If the market for a financial asset is not active or if the assets compriseunlisted securities, the Group establishes fair value by using valuationtechniques which include the use of recent arm’s-length transactions,reference to other instruments that are substantially the same anddiscounted cash flow analysis refined to reflect the issuer’s specificcircumstances.(b) Loans and receivablesLoans and receivables are non-derivative financial assets held with nointention of trading and which have fixed or determinable paymentsthat are not quoted in an active market. They are included in trade andother receivables within current assets, except for maturities greaterthan twelve months which are classified as other non-current assets.(c) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets withfixed or determinable payments and fixed maturities that the Grouphas the intention and ability to hold to maturity. The Group did nothold any investments in this category during the year.2.9. Other non-current assetsThe Group holds a collection of jewellery and watch pieces primarilyfor presentation purposes to promote the Maisons and their history.They are not intended for sale.Maisons’ collection pieces are held as non-current assets at cost lessany permanent impairment in value.2.10. InventoriesInventories are stated at the lower of cost or net realisable value. Netrealisable value is the estimated selling price in the ordinary course ofbusiness, less applicable variable selling expenses. Cost is determinedusing either a weighted average or specific identification basis dependingon the nature of the inventory. The cost of finished goods and workin progress comprises raw materials, direct labour, related productionoverheads and, where applicable, duties and taxes. It excludesborrowing costs.2.11. Trade and other receivablesTrade and other receivables are recognised initially at fair value andsubsequently measured at amortised cost using the effective interestmethod, less provision for impairment. A provision for impairmentof trade receivables is established when there is objective evidence thatthe Group will not be able to collect all amounts due according to theoriginal terms of the receivables. The amount of the provision is thedifference between the asset’s carrying amount and the present valueof estimated future cash flows, discounted at the effective interest rate.The movement of the provision is recognised in the income statement.2.12. Cash and cash equivalentsCash and cash equivalents includes cash on hand, deposits held at callwith banks, other short-term highly liquid investments with originalmaturities of three months or less and bank overdrafts.2.13. Equity(a) Share capitalOrdinary shares are classified as equity. Incremental costs directlyattributable to the issue of new shares are recognised as a deductionfrom equity, net of any tax effects.(b) Treasury sharesAll consideration paid by the Group in the acquisition of treasuryshares and received by the Group on the disposal of treasury sharesis recognised directly in shareholders’ equity. The cost of treasuryshares held at each balance sheet date is deducted from shareholders’equity. Gains or losses arising on the disposal of treasury shares arerecognised within retained earnings directly in shareholders’ equity.2.14. BorrowingsBorrowings are recognised initially at fair value, net of transactioncosts incurred. Borrowings are subsequently stated at amortised cost;any difference between the proceeds (net of transaction costs) andthe redemption value is recognised in the income statement overthe period of the borrowings using the effective interest method.Borrowings are classified as current liabilities unless the Group hasan unconditional right to defer settlement of the liability for at leasttwelve months after the balance sheet date.2.15. Current and deferred income taxTaxes on income are provided in the same period as the revenue andexpenses to which they relate. Current taxes include capital taxes ofsome jurisdictions.Deferred income tax is provided using the liability method, ontemporary differences arising between the tax bases of assets andliabilities and their carrying amounts in the consolidated financialstatements. Deferred income tax is not accounted for if it arises frominitial recognition of an asset or liability in a transaction, other thana business combination, that at the time of the transaction affectsneither accounting nor taxable profit or loss. Deferred income taxis determined using tax rates (and laws) that have been enacted orsubstantially enacted by the balance sheet date and are expected toapply when the related deferred income tax asset is realised or thedeferred income tax liability is settled.Deferred income tax assets are recognised to the extent that it isprobable that future taxable profit will be available against whichthe temporary differences and the carry forward of unused tax lossescan be utilised.Deferred income tax is provided on temporary differences arisingon investments in subsidiaries, joint ventures and associates, exceptwhere the Group controls the timing of the reversal of the temporarydifference and it is probable that the temporary difference will notreverse in the foreseeable future.2.16. Employee benefits(a) Retirement benefit obligationsThe Group operates a number of defined benefit and definedcontribution post-employment benefit plans throughout theworld. The plans are generally funded through payments to trusteeadministeredfunds by both employees and relevant Group companiestaking into account periodic actuarial calculations. A defined benefitplan is a pension plan that defines an amount of pension benefit thatan employee will receive post-employment, usually dependent on oneor more factors such as age, years of service and compensation.Richemont Annual Report and Accounts 2009 63Consolidated financial statements
Page 3 and 4:
Financial and operating highlights
Page 5 and 6:
BUSINESS DEVELOPMENTWhilst the year
Page 8 and 9:
JewelleryMaisonsKey resultsSales (
Page 10 and 11:
Exceptional client service remains
Page 12 and 13:
SpecialistWatchmakersKey resultsSal
Page 14 and 15: Established 1845Altenberger Strasse
Page 17 and 18: Established 1860Piazza San Giovanni
Page 19 and 20: Established 183050 chemin de la Ch
Page 21 and 22: Established 20078 chemin de Blandon
Page 23 and 24: Established 1906Hellgrundweg 100Ham
Page 27 and 28: OtherBusinessesKey resultsSales (
Page 29 and 30: Established 19837 rue de MoussyPari
Page 32 and 33: Financial reviewRICHARD LEPEU, GROU
Page 34 and 35: Sales and operating results by busi
Page 36 and 37: Sales by distribution channelin €
Page 38 and 39: Summarised balance sheetin € mill
Page 40 and 41: Corporate responsibilityRichemont h
Page 42 and 43: Corporate governanceGENERAL PRINCIP
Page 44 and 45: on page 103. The operating expense
Page 46 and 47: Board of directors of Compagnie Fin
Page 48 and 49: Board of directors of Compagnie Fin
Page 50 and 51: Group Management CommitteeJohann Ru
Page 52 and 53: Continued from page 47The executive
Page 54 and 55: Salary and other short-term benefit
Page 56 and 57: No specific provisions exist in the
Page 58 and 59: Consolidated balance sheetat 31 Mar
Page 60 and 61: Consolidated statement of changes i
Page 62 and 63: Notes to the consolidated financial
Page 110 and 111: Company financial statementsCompagn
Page 112 and 113: Compagnie Financière Richemont SAN
Page 114 and 115:
Compagnie Financière Richemont SAR
Page 116 and 117:
Five year record continuedConsolida
Page 118 and 119:
Notice of meetingThe Annual General
Page 120:
www.richemont.com
show all

Richemont is one of the world's leading luxury - Alle jaarverslagen

Create successful ePaper yourself

Delete template?

Save as template?