Read the Registration Document - Guerbet

Changes in standards and interpretations applicable to the consolidated financial statements in the periodStandards, amendments and interpretations whose application was mandatory commencing in the periodStandards, amendments and interpretations whose application are not warranted or would not have amaterial effect on the consolidated financial statements of the period include:- Amendments to IFRS 7: Disclosures - Transfers of financial assets- Amendments to IAS 12: Recovery of underlying assetsStandards, amendments and interpretations adopted by the European Union, applicable in advance for thefiscal year but not yet applied by the Group- Amendments to IFRS 7: Disclosures on the offsetting of financial assets and financial liabilities.- Amendments to IAS 1: Presentation of other comprehensive income- Amendments to IAS 19: Employee benefits- IFRS 13: Fair value measurement- IFRS 10: Consolidated financial statements- IFRS 11: Joint arrangements- IFRS 12: Disclosure of interests in other entities- Amendments to IAS 28: Investments in associates and joint ventures- Amendments to IAS 32: Offsetting financial assets and financial liabilitiesWhile the potential impacts of these standards and amendments are currently being assessed, at this stageof the review, their application is not expected to result in a significant change for the Group.b) Estimates and assumptionsTo prepare the financial statements in compliance with IFRS, the Group makes estimates and assumptionsthat affect the book value of assets and liabilities, income and expenses, as well as information provided incertain notes.Management reviews these estimates and assumptions on an ongoing basis in reference to pastexperience as well as other factors considered reasonable that provide the basis for these assumptions.The main estimates concern primarily the measurement of intangible assets, the impairment of inventory,provisions, litigation with third parties and deferred taxes.c) Basis of consolidationGuerbet applies:- The full consolidation method for companies in which the parent company directly or indirectlyexercises exclusive control;- The equity accounting method for companies in which the Group exercises, directly or indirectly, asignificant influence without assuring however the management;- The proportionate method for companies in which the Group exercises joint control with a limitednumber of other shareholders.All intercompany transactions are eliminated.d) Consolidation of subsidiariesBusiness combinations are recorded in accordance with IFRS 3 according to the purchase method. Underthis method, assets and liabilities acquired in addition to contingent liabilities incurred are recorded at fairvalue at the acquisition date.75