Read the Registration Document - Guerbet

Property, plant and equipment are subject to an impairment test whenever there is evidence of impairment.To this purpose, tangible assets are grouped into cash generating units (CGU). A CGU is a homogeneousgroup of assets that generates cash inflows from continuing use largely independent of the cash inflowsfrom other assets or groups of assets. The value in use of these units is the net present value of the futurecash flows expected to be derived from an asset. When the recoverable value is lower than the carryingvalue of the asset (or group of assets), an impairment loss is recorded in the income statement for thedifference and allocated in priority to goodwill.An impairment loss recorded for goodwill may not be reversed.j) Capital leasesFinance leasesProperty acquired through finance leases are capitalised when they transfer substantially all risks andrewards incident to ownership of an asset to the Group. The criteria for evaluating these leases are notably:- The relationship between the lease period and the economic life of the asset;- Total future payments in relation to the fair value of the asset financed;- Transfer of title at the end of the lease period;- The existence of a bargain purchase option;- The specific nature of the leased assets.Assets acquired through finance leases are capitalised and an obligation of the same amount is recordedas a liability. Each lease instalment payment is broken down into interest expense and repayment of thedebt.Assets held through finance leases are depreciated over the shorter of their useful lives or thecorresponding lease period.Operating leasesOperating leases constitute all leases other than those with the characteristics of finance leases. Operatinglease payments are recognised as an expense in the income statement.k) Financial assetsFinancial assets are recognised and measured by the Group in accordance with IAS 39 on the IFRStransition date (option IFRS 1). Financial assets, excluding cash and financial derivatives, are classified intoone of the following four categories:- Financial assets held for trading;- Originated loans and receivables;- Held to maturity investments;- Available-for-sale financial assets.The Group determines the classification of financial assets at the time of their initial recognition according tothe purpose for which they were acquired.Financial assets held for tradingThese correspond to trading assets destined principally to generate short-term gains or intentionallyclassified under this category. Initially measured at cost, they are remeasured at fair value with gains andlosses recorded under income.Originated loans and receivablesOriginated loans and receivables are measured at amortised cost using the effective interest method. Thebalance sheet value includes the outstanding amount of the principal increased by accrued interest. Theyare subject to impairment testing of the recoverable value when there exists an indication that this amountis less than the carrying value of these assets to be conducted at least upon every financial cut-off period.When the recoverable value is less than the carrying value, an impairment is recorded in the incomestatement.78