Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
2.1.2 New applicable accounting
standards and interpretations
The new standards, interpretations and amendments
whose application was mandatory effective for the
fiscal year beginning September 1, 2010 had no
material impact on the Group’s financial statements
for Fiscal 2011:
• The following pronouncements were determined
to not be applicable to the Group: the amendment
to IFRS 2 “Group Cash-settled Share-based
Payment Arrangements”; IFRIC interpretation 19
“Extinguishing Financial Liabilities with Equity
Instruments”; and the amendment to IAS 32
“Classification of Rights Issues”;
• The 2010 annual improvements to IFRSs, adopted
by the European Union in February 2011, had no
material impact on the Group financial statements.
These improvements included the following: the
amendments to IFRS 3 “Business Combinations”;
and IAS 27 “Consolidated and Separate Financial
Statements”.
2.1.3 Accounting standards and
interpretations issued but not yet
applicable
The Group has not elected early application of
standards and interpretations not required to be
applied in Fiscal 2011. The Group is currently
researching the practical consequences of these
new rules and the impact of their application on
the annual financial statements.
A comprehensive list of accounting standards
adopted by the European Union is available for
consultation on the European Commission website
at http://ec.europa.eu/internal_market/accounting/
ias/standards_en.htm.
2.2 Use of estimates
The preparation of financial statements requires
the management of Sodexo and its subsidiaries
to make estimates and assumptions which affect
the amounts reported for assets, liabilities and
contingent liabilities as of the date of preparation
of the financial statements, and for revenues and
expenses for the period.
Sodexo Registration Document Fiscal 2011
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These estimates and evaluations are updated
continuously based on past experience and on
various other factors considered reasonable in view
of current circumstances, and are the basis for the
assessments of the carrying amount of assets and
liabilities.
Actual results may differ substantially from these
estimates if assumptions or circumstances change.
Significant items subject to such estimates and
assumptions include the following:
• impairment of current and non-current assets
(notes 4.10 and 4.13);
• fair value of derivative financial instruments
(note 4.17);
• provisions for litigation and tax risks (notes 4.19
and 4.28);
• valuation of post-employment defined benefit
plan assets and liabilities (note 4.18);
• deferred taxes (note 4.21);
• share-based payment (note 4.23);
• valuation of goodwill and acquired intangible
assets and their estimated useful lives (note 4.24).
2.3 Principles and methods of
consolidation
2.3.1 Intragroup transactions
Intragroup transactions and balances, and unrealized
losses and gains between Group companies, are
eliminated. Unrealized losses are eliminated in the
same way as unrealized gains, unless they represent
an impairment loss.
2.3.2 Consolidation methods
A subsidiary is an entity directly or indirectly
controlled by Sodexo SA. Control exists when
Sodexo has the power to govern the financial and
operating policies of an entity so as to obtain benefits
from its activities. In assessing whether control
exists, potential voting rights that are currently
exercisable or convertible are considered. The
financial statements of subsidiaries are included in
the consolidated financial statements from the date
on which control is obtained to the date on which
control ceases to be exercised.