to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTES4.12. Treasury sharesTreasury shares are recorded as a reduction to shareholders’ equity at their purchase cost.When future contracts are entered into to purchase treasury shares at a given price and on a given date,the commitment is reflected by the recognition of a financial liability representative of the discountedbuyback value and offset against equity. Subsequent variations in the value of this financial liability arerecognised under finance income and expense.On the disposal of treasury shares, gains and losses are recorded in consolidated reserves, net of tax.4.13. Share-based paymentsM6 Group has implemented share subscription option plans, as well as free share allocation plans for thebenefit of its personnel (see Note 9). In compliance with IFRS 2 – Share-based payments, personnelremuneration items paid in equity instruments are recognised as personnel costs in the income statementand offset against equity.The total initial cost of the benefit is measured once and for all, using the binomial mathematical model inthe case of share subscription option plans, at the date of allocation of the options and spread over thevesting period.In the case of free share allocation plans, the total initial cost is estimated to be the market value of theM6 share on the date of allocation less dividends expected during the vesting period. This cost is postedto the income statement and spread over the same vesting period.In the context of the transition to IFRS and in compliance with the requirements of IFRS 1, the Group hasonly recognised, in its valuation of the fair value of benefits awarded to employees, those plans grantedafter 7 November 2002 for which the rights had not yet been vested at 1 January 2005.4.14. Retirement benefits and other employee benefitsRETIREMENT BENEFITSThe Group only has retirement benefit commitments under defined benefit schemes.A defined benefit plan is a post-employment benefit plan under which payments made to a distinct entitydo not discharge the employer from its obligation to pay additional contributions.The Group’s net obligation in respect of defined benefit plans is measured using the value of futurebenefits acquired by personnel in exchange of services rendered during the current and previous periods.This amount is discounted to measure its present value. The discount rate is equal to the interest rate, atthe balance sheet date, of top-rated bonds with a maturity date close to that of the Group’scommitments and denominated in the same currency as that used to pay out benefits.Calculations are carried out every year by a qualified actuary using the projected unit credit method.M6 GROUP - 2012 REGISTRATION DOCUMENT - 171