to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESCASH FLOW FROM OPERATING ACTIVITIESMovements in inventories and receivables are calculated net of movements in provisions against currentassets.In addition, in order to highlight the effect of taxation on the movement in cash, the tax expense isremoved from the self-financing capacity, and the movement in the tax liability is removed from thechange in working capital requirements (WCR). The disbursement for taxation is thus isolated as aspecific line item.CASH FLOW FROM INVESTMENT ACTIVITIESThe effects on cash of adjustments to the consolidation scope resulting from acquisitions and disposalsof entities (other than discontinuing operations) are identified on the lines “Cash and cash equivalentsarising from subsidiary acquisitions” and “Cash and cash equivalents arising from subsidiary disposals”.DISCONTINUING OPERATIONSONSThe effects on the Group’s cash of discontinuing operations are shown on a separate line in the cash flowstatement, “Cash flow linked to discontinuing operations”.5. Changes in methodsThe Group opted for the early application of the amendment to IAS 1 – Presentation of items of othercomprehensive income (OCI), applicable to financial years starting on or after 1 July 2012.This amendment requires a distinction be made among other items of comprehensive income betweenitems that will be reclassified in profit and loss and items that will not be reclassified. This amendment hasno material impact on the presentation of the Group’s published consolidated statement ofcomprehensive income.The Group also opted for the early application of amendments to IAS 19 – Defined benefit plans,applicable to financial years starting on or after 1 January 2013.The Group uses the projected unit credit method to calculate pension benefits. The application of thisrevised standard has no significant impact on the Group’s consolidated financial statements. However,more detailed information is provided in Note 27.6. Business combinationsOn 31 October 2012, M6 Web acquired the Tom’s Games websites (jeuxvideoPC.com and jeuxvideoflash.com)from Best of Media.This acquisition has been treated as a business combination in accordance with revised IFRS 3.The full purchase price was allocated to goodwill, as asset allocation was not deemed significant onGroup scale.The acquisition cost was €3.1 million, comprising the initial acquisition price and the full first portion ofearnout (estimated fair value of potential earnout in accordance with revised IFRS 3).The allocation used in the consolidated financial statements to 31 December 2012 is provisional. It willonly become final at the end of a period of 12 months following the acquisition.7. Segment reportingThe Group has applied IFRS 8 - Operating segments since 1 January 2009 in order to present its netprofit, balance sheet and investments by relevant operating segment.M6 GROUP - 2012 REGISTRATION DOCUMENT - 175