Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
2.20 Deferred taxes
Deferred taxes are recognized on temporary
differences between the carrying amount of an asset
or liability and its tax base, using the tax rate that
is expected to apply in the period when the asset
is realized or the liability is settled, based on tax
rates (and tax laws) that are enacted or substantially
enacted at the balance sheet date.
Deferred taxes are not recognized on the following
items:
• initial recognition of goodwill that is not
deductible for tax purposes;
• initial recognition of an asset in a transaction that
is not a business combination and that affects
neither accounting profit nor taxable profit; and
• temporary differences on investments in
subsidiaries that are not expected to reverse in
the foreseeable future.
Taxes on items recognized directly in shareholders’
equity or in other comprehensive income are
recognized in shareholders’ equity or in other
comprehensive income and not in the income
statement.
Residual deferred tax assets on tax loss carryforwards
(after offset of deferred tax liabilities)
are only recognized if their recovery is considered
probable.
Deferred tax assets and liabilities are offset if there
is a legally enforceable right to set off current tax
assets and liabilities and the deferred taxes relate to
the same taxable entity and tax authority.
2.21 Trade and other payables
Trade and other payables are measured at fair value
on initial recognition, and subsequently at amortized
cost.
Sodexo Registration Document Fiscal 2011
2.22 Income statement
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2.22.1 Income statement by function
As permitted by IAS 1, “Presentation of Financial
Statements”, Sodexo presents its income statement
by function.
Operating profit comprises the following components:
• gross profit;
• Sales Department costs;
• general and administrative costs; and
• other operating income and expense.
2.22.2 Revenues
In accordance with IAS 18, revenues reported by
Sodexo relate to the sale of services in connection
with the ordinary activities of fully-consolidated
companies as follows:
• On-site Service Solutions: revenues include all
revenues stipulated in the contract, taking into
account whether Sodexo acts as principal (the
vast majority of cases) or agent;
• Motivation Solutions: revenues comprise
commissions received from clients and affiliates,
financial income from the investment of surplus
cash generated by the activity, and profits from
vouchers and cards not reimbursed.
In accordance with IAS 18, revenues are measured
at the fair value of the consideration received or to
be received, net of discounts and rebates and value
added tax (VAT) and other taxes. Revenues are
recognized when it is probable that future economic
benefits will flow to Sodexo and these benefits can
be measured reliably. No income is recognized if
there is significant uncertainty about recoverability
of the costs incurred or to be incurred in meeting the
service obligation.
Foodservices and other on-site services revenues are
recognized when the service is rendered.