Registration Document

P ◀ CONTENTS ▶
If benefits under an existing plan are amended or a
new plan is established, past service cost relating
to vested benefits is recognized in the income
statement, and past service cost relating to benefits
not yet vested is recognized on a straight line basis
over the average residual vesting period.
The accounting treatment applied to defined-benefit
plans is as follows:
• the obligation, net of plan assets, is recognized
as a non-current liability in the balance sheet if
the obligation exceeds the plan assets and the
unrecognized past service cost;
• if the value of plan assets exceeds the obligation
under the plan, the net amount is recognized
as a non-current asset. Overfunded plans are
recognized as assets only if they represent future
economic benefits that will be available to Sodexo.
Where the calculation of the net obligation results
in an asset for Sodexo, the amount recognized
for this asset may not exceed the total of the
unrecognized past service cost plus the present
value of all future refunds and reductions in
future contributions under the plan;
• the expense recognized in the income statement
comprises:
• current service cost, amortization of past
service cost, and the effect of any plan
curtailments or settlements, all of which are
recorded in operating income,
• the effect of discounting and the expected
return on plan assets, which are recorded in
financial income or expense.
Sodexo contributes to multi-employer plans,
primarily in Sweden and the United States. These
plans are accounted for as defined-contribution
plans, as the information provided by the plan
administrators is insufficient for them to be
accounted for as defined-benefit plans.
Consolidated information 06
Notes to the Consolidated Financial Statements
2.17.3 other long-term employee benefits
Other long-term employee benefits are measured in
accordance with IAS 19. The expected cost of such
benefits is recognized as a non-current liability over
the employee’s period of service. Actuarial gains and
losses are recognized immediately in the income
statement.
2.18 Vouchers payable
Vouchers payable are recognized as a current liability
at fair value, which is the face value of vouchers
in circulation or returned to Sodexo but not yet
reimbursed to affiliates.
2.19 Share-based payment
Some Group employees receive compensation in the
form of share-based payment, for which payment is
made in equity instruments.
The services compensated by these plans are
recognized as an expense, with the offset recognized
in shareholders’ equity, over the vesting period.
The amount of expense recognized in each period
is determined by reference to the fair value of the
options granted as of the grant date, computed using
the binomial model.
On an annual basis, Sodexo reassesses the number
of potentially exercisable options. The impact of
any change in estimates is recognized in the income
statement, with the offset recognized in shareholders’
equity.
At the time of the transition to IFRS, only stock
option plans granted after November 7, 2002 and
not vested as of January 1, 2005 were measured, as
permitted by IFRS 2.
Sodexo Registration Document Fiscal 2011
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