Read the Registration Document - Guerbet

Held to maturity investmentsHeld-to-maturity-investments are financial assets the Group intends to and is able to hold to maturity. Theseassets are recorded at amortised cost on the basis of the effective interest rate method.They are subject to impairment testing when there is an indication of impairment. When the carrying valueis greater than the estimated recoverable value, an impairment is recorded.Available-for-sale assetsAvailable-for-sale assets are a residual category for non-derivative financial assets that do not fall in any ofthe previous categories. Unrealised capital gains or losses are recorded under shareholders' equity untiltheir disposal, with the exception of impairment recorded under income upon measurement.Currency gains and losses on these assets are recognised under income for monetary assets andshareholders' equity for non-monetary assets.Fair value for listed securities corresponds to market price and for unlisted securities is determined on thebasis of reference to recent transactions or reliable and objective indicators and third-party estimations andmarket data. However, when fair value cannot be reasonably estimated, it is maintained at cost. Theseassets are subject to impairment testing to determine their recoverable value.This category of investments concerns mainly non-consolidated participating interests and marketablesecurities that do not meet the other definitions for financial assets. They are classified under other assets(current and non-current) and cash and cash equivalents.l) InventoriesRaw materials and other supplies are recorded at the opening weighted average price. When the carryingvalue falls below this amount, a provision is recorded for the difference. Provisions are also made forinventories subject to low turnover rates.Production in progress and finished goods are recorded on the basis of production cost which includesdirect and indirect production costs and excludes headquarters, financial or selling expenses. A provisionfor impairment is recorded when there is a risk that the products will not be sold before their expiration dateor below cost in light of selling costs that remain to be incurred.m) Trade receivables and related accountsAccounts receivable are recorded at face value. An impairment charge is recorded when a collection riskexists determined on a case-by-case basis, except under certain specific economic circumstances.The securitisation of receivables consists of the assignment of receivables to an entity that finances theacquisition of these receivables by the issuance of securities on capital markets. When guarantees grantedto this entity do not suffice to consider that there was a real transfer of risks to the assignee, thesereceivables continue to be recorded under assets with a debt recorded under liabilities for the amount offinancing granted by the entity.n) Non-current assets held for saleA non-current asset, or group of assets and liabilities, is classified as held for sale when its carrying amountwill be principally recovered through a sale transaction rather than through continuing use. For this to be thecase, the sale must be highly probable. For the sale to be considered highly probable, there must exist aplan to sell the asset (or "disposal group"), management must be committed to sell the asset and the assetmust be actively marketed.o) Cash and cash equivalentsCash includes cash on hand and bank balances. Cash equivalents include marketable securities, termdeposits which can be realised or sold within a very short period (less than three months) and do notpresent a significant risk of impairment in response to interest rate changes. These marketable securitiesare considered as financial instruments remeasured at fair value in income.79