Read the Registration Document - Guerbet

p) ProvisionsProvisions correspond to liabilities that meet the following criteria:- Uncertain timing or amount;- The economic impact for the Group is negative, i.e. this liability is analysed as a Groupcommitment to a third party for which it is probable or certain that it will result in an outflow from the Groupof resources embodying economic benefits to settle the obligation, without receiving in exchangeconsideration of a value at least equivalent to the latter.To manage its interest rate exposure, the Group has recourse to options recorded at fair value inaccordance with IAS 39. Changes in fair value of these financial instrument are recognised in the incomestatement under "Finance costs".q) Employee benefitsIn accordance with the laws and practices applicable in the countries where the Group operates, employeesmay qualify for retirement indemnities.Retirement indemnities are measured in compliance with IAS 19.For defined contribution plans concerning post-employment benefits, costs are estimated according to themethod of the projected unit credit method.This method is based on benefits payable to employees on their expected date of retirement taking intoaccount the age pyramid, rate of employee turnover, mortality rates on the basis of actuarial tables by agebracket. The amounts are revalued according to assumptions concerning inflation and promotions anddiscounted in respect to the date benefits will actually be paid.When the assumptions on which calculations are based are revised, actuarial gains and losses arerecorded under equity.All plans are remeasured once year.r) Financial instrumentsThe Group trades in financial instruments to manage and reduce interest rate and foreign exchangeexposures. These instruments are traded with investment grade financial institutions. Under IAS 39recourse to hedge accounting requires that its effectiveness must be demonstrated and documented frominception and throughout the life of the hedge.The effectiveness of the hedge is evaluated in relation to the changes in the value of the hedge and thehedged item that must remain between a range of 80% and 125%.Financial instruments are recognised in the balance sheet at market value on the closing date. Changes inthe value are recognised on the basis of the following principles:- For cash flow hedges, changes in fair value are recognised under shareholders' equity for theeffective portion and the ineffective portion is recognised in the income statement;- For fair value hedges all changes in fair value are recognised in the income statement.Market value is determined on the basis of the trading price of third-party establishments and verified by afirm specialised in financial instruments. Changes in fair value of financial instrument derivatives arerecognised in the income statement under "Finance costs" for interest rate derivatives and under “Currencygains (losses)” for foreign exchange derivatives.s) Revenue recognitionRevenue is recognised when significant risks and rewards incident to ownership have been transferred tothe buyer. Revenue is recognised net of cash discounts granted.t) Investment grantsInvestment grants are not recorded as a charge to fixed assets acquisition costs but instead under deferredrevenue. They are written back to other operating income on the basis of the depreciation of thecorresponding fixed assets financed by these grants. Special grants received to support innovation and job80