to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESThe Group immediately recognises against other items of comprehensive income all actuarial differencesarising in respect of defined benefit plans.SEVERANCE PAYSeverance pay is recognised as an expense when the Group is obviously committed, with no realpossibility to retract, to a formal and detailed redundancy plan before the normal retirement age.SHORTHORT-TERM TERM BENEFITSObligations arising from short-term benefits are measured on a non-discounted basis and recognised ascorresponding services are rendered.A liability is recognised for the amount the Group expects to pay in respect of employee profit-sharingplans and for bonuses paid in short-term cash when the Group has an actual obligation, legal orconstructive, to make these payments as consideration for past services rendered by personnel and thisobligation may be reliably assessed.4.15. ProvisionsIn compliance with IAS 37 – Provisions, contingent liabilities and contingent assets, the Group recognisesa provision when, at the balance sheet date, it has an obligation (legal or constructive) towards a thirdparty resulting from a past event, for which it is probable that an outflow of resources embodyingeconomic benefits will be required, and when a reliable estimate can be made of the amount of theobligation.The amount recognised under provisions is the best estimate of the cash outflow necessary to settle thepresent obligation on the balance sheet date.In the case that this liability is not probable and cannot be reliably measured, but remains possible, theGroup recognises a contingent liability in its commitments.Provisions are predominantly intended to cover probable costs of trials or litigation in process, of whichthe trigger event existed at the balance sheet date.4.16. Derivative financial instrumentsThe M6 Group is principally exposed to foreign exchange rate risk when purchasing broadcasting rightsin a foreign currency. In order to protect itself from foreign currency exchange risk, the Group uses simplederivative instruments guaranteeing it a covered amount and a maximum exchange rate for this hedgedamount.The Group’s use of derivative instruments is with the sole aim of hedging commitments arising from itsactivity and never for a speculative purpose.DETERMINETERMINATION OF FAIR VALUEIn accordance with IFRS 7 – Financial instruments: disclosures and IAS 39 – Financial instruments:recognition and measurement, derivative financial instruments are measured at fair value, based on avaluation carried out by a third party derived from observable market data. The fair value of foreigncurrency purchase contracts is calculated with reference to a standard forward exchange rate forcontracts with similar maturity profiles. The fair value of interest rate swaps is determined with referenceto the market values of similar instruments.FINANCIAL INSTRUMENTS QUALIFYING AS HEDGES172 - M6 GROUP - 2012 REGISTRATION DOCUMENT