Download the 2009 annual report in PDF format - ANF

128
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated fi nancial statements
To successfully complete the Fauchier project for the construction
and sale of residential units, ANF brought on board a number of
partners to establish SCCV 1-3 rue d’Hozier, in which it holds a
45% interest. As it doesn’t control this company it hasn’t been
consolidated but instead accounted for by the equity method.
All internal transactions and balances were eliminated upon
consolidation in proportion to the ANF Group’s interest in SGIL.
Segment reporting
IAS 14, replaced by IFRS 8, requires entities that have equity or
debt securities traded on an organised market or that are in the
process of issuing securities on a public securities market to present
business and geographic segment reporting.
Segment reporting is prepared on the basis of criteria relating to
business activities and geographic regions. Primary segment
reporting is business-related, inasmuch as it represents the group’s
management structure and is presented on the basis of the following
business segments:
• Rental of Haussmann-style properties;
• Hotel rental.
Secondary segment reporting is by geographic region:
• Lyons region;
• Marseilles region.
IFRS 8 “Operating segments” requires that the information published
by an entity enable users of its fi nancial statements to evaluate the
nature and fi nancial effects of the type of business activities in which
it engages and the economic environment in which it operates.
The Company elected to continue providing segment reporting
in the same manner as before (breakdown by business segment:
Hotels and Haussmann-style properties and geographic breakdown
of the Haussmann-style properties (Lyons and Marseilles)).
Real estate assets
a) Investment property (IAS 40)
IAS 40 defi nes investment property as property held by the owner
or lessee (under a fi nance lease) to earn rentals or for capital
appreciation, or both, as opposed to:
• using this property for the production or supply of goods or
services or for administrative purposes;
• selling it in the normal course of a trading business (estate
agency).
Assets acquired under leases qualifying as fi nance leases are
recognised as assets in the balance sheet, and the corresponding
loans are recognised as liabilities under debt. Correspondingly, the
lease payments are cancelled and the fi nancial expense stemming
from the fi nancing along with the fair value of the asset are
recognised in line with Group accounting methods.
The ANF Group has opted to measure its investment property at
fair value. This option does not apply to operating property, which
ANF • 2009 ANNUAL REPORT
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is measured at historical cost less accumulated depreciation and
any impairment.
The fair value of non-current assets is determined at each closing
date by two independent appraisers (Jones Lang LaSalle and
Atisreal Expertise), who appraise the Group’s real estate assets on
the basis of long-term ownership. The fair value is the appraisal
value excluding transfer taxes. Real-estate appraisers are rotated
every four years.
This appraisal is carried out on the basis of AFREXIM (Association
Française des Sociétés d’Expertise Immobilière – French
Association of Real Estate Appraisers) specifi cations and in line with
the recommendations of the February 2000 report of the working
group chaired by Barthès de Ruyter on the appraisal of the real
estate assets of listed companies.
The change in the fair value of investment property is recognised
in income.
This property is accordingly neither subject to depreciation nor
impairment. Any change in fair value for each property is recognised
in the income statement for the period and is determined as follows:
Change in fair value = Market value N – [market value N – 1
+ capitalised work and expenses for period N].
Investment property in the process of redevelopment is recognised
at fair value where it is not being rebuilt; and in accordance with
IAS 16 where it is being restructured.
Virtually all of ANF’s real estate assets are recognised as
investment property. Buildings being restructured and intended
to be subsequently re-let are also kept in the investment property
category.
Gains (losses) on disposal of an investment property are calculated
with reference to the most recent fair value recognised in the
balance sheet at the previous balance sheet date.
b) Assets held for sale (IFRS 5)
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In accordance with IFRS 5, where the Group has undertaken to
sell an asset or group of assets, it classifi es them as assets held for
sale under current assets in the balance sheet at their most recent
known fair value.
Properties included in this category continue to be measured using
the fair value approach.
To be classifi ed as an “asset held for sale”, a property must satisfy
all the following criteria:
• the asset must be immediately available for sale in its current
condition;
• a sale must be highly likely, formalised through the notifi cation of
the Properties Committee, and a decision of the Executive Board
or Supervisory Board;
• and there must be an active search for a buyer, evidenced by a
signed sell order.
Properties that are in the process of being sold are presented on a
separate line in the balance sheet.
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