Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
As of that date, the Group decided to no longer
use the official exchange rate published by the
Venezuelan government, namely USD 1 = 4.3
bolivar. The financial statements for the year
ended August 31, 2010 of subsidiaries operating in
Venezuela have consequently been translated at the
rate of USD 1 = 8.25 bolivar, or 1 euro = 10.46 bolivar
corresponding to the last observable quotation on
the parallel currency market, and for the year ended
August 31, 2011, at the rate of USD 1 USD = 9.39
bolivar, or 1 euro = 13.57 bolivar, which is the rate
observed for recent transactions.
The impact on the Group’s financial statements is provided below:
(in euro million)
Amounts used
by the Group
€1 = 13.57 VeF
Sodexo Registration Document Fiscal 2011
The Group considers these to be the most appropriate
rates, for the following reasons:
• to better reflect the economic parity between
the euro and the Bolívar resulting from the
hyperinflationary situation in Venezuela since
the end of 2009; and
• to estimate the most probable rate at which
the Group considers it will be able to convert
Bolivars into euro in the future given the current
restrictions on official market transactions placed
by the country’s authorities.
Fiscal 2011 Fiscal 2010
Proforma
amounts at
official rate
€ 1 = 6.21 VeF
Impact of
choice on
published
financial
statements
Amounts used
by the Group
€1 = 10.46 VeF
Proforma
amounts at
official rate
€1 = 5.45 VeF
Impact of
choice on
published
financial
statements
Revenue of Venezuelan
subsidiaries
Operating income of
51 111 (60) 60 116 (56)
Venezuelan subsidiaries
Net earnings of Venezuelan
19 41 (22) 25 49 (24)
subsidiaries
Shareholders’ equity of
6 13 (7) 7 14 (7)
Venezuelan subsidiaries 14 31 (17) 15 28 (13)
2.4 Business combinations
and goodwill
The Group has applied IFRS 3R (revised in 2008)
“Business Combinations” since September 1, 2009.
The purchase method is used to account for
acquisitions of subsidiaries by the Group. Fair value
of the consideration corresponds to the fair value
of assets acquired, equity instruments issued by the
purchaser and liabilities assumed as of the date of the
acquisition. Costs directly related to the acquisition
are expensed as incurred in the income statement.
On initial consolidation of a subsidiary or equity
interest, the Group measures all identifiable elements
acquired in the currency of the acquired entity.
Changes to the measurement of identifiable assets
and liabilities resulting from specialist evaluations or
additional analysis may be recognized as adjustments
to goodwill if they are identified within one year of
the date of acquisition and result from facts and
circumstances existing at the acquisition date. Once
this one year period has elapsed, the effect of any
adjustments is recognized directly in the income
statement (unless it is the correction of an error),
including recognition of deferred tax assets which are
recognized in the income statement as a tax benefit if
more than one year after the acquisition date. Goodwill
arising on the acquisition of associates is included in
the value of the equity method investment.
2.4.1 Goodwill
P ◀ CONTENTS ▶
Acquisitions made since September 1, 2009
Any residual difference between the fair value of the
consideration transferred (for example the amount
paid), increased by the amount of the non-controlling
equity interest in the acquired company (measured
either at fair value or its share in the fair value of
the identifiable assets acquired) and the fair value as