Read the Registration Document - Guerbet

creation are recorded under "Other revenue from ordinary activities" in the period in which they are fullyvested.u) Share-based paymentShare-based payments concern stock option plans in favour of employees. The Group applies IFRS 2 tostock options granted to employees after 7 November 2002.The binomial options pricing model is applied for the fair value measurement of options granted.The fair value of options is recognised under staff costs and spread over the duration of the vesting period,with a reverse entry under shareholders' equity.v) Income tax, deferred tax and French business taxThe tax charge on income corresponds to tax payable for each consolidated tax entity, adjusted for deferredtax resulting from temporary differences between the tax basis and the book basis of assets and liabilitiesaccording to the liability method when reversals can be reliably scheduled. The tax rate and rules are basedon tax regulations in force at year-end and those that will apply when the transactions concerned aresettled.Deferred taxes on losses are recorded when the recovery of these taxes is considered probable in the nearfuture.Deferred tax assets or liabilities are offset at the level of each tax entity and the resulting net amount isrecorded under liabilities or assets.In France Guerbet and Simafex form a tax group within the framework of Article 223 A of the Frenchgeneral tax code and consequently constitute a single tax entity.The French businesses tax (Contribution Economique Territoriale or CET) that entered into force in 2010,replacing the previous tax (Taxe Professionnelle) includes a new levy on added value (Contribution Baséesur la Valeur Ajoutée or CVAE). After analysis and in respect to procedures for calculating this contribution,it was decided to present this levy under "Tax and similar payments" as was previously the case for thelocal business tax for which companies of the Group already benefited from a maximum assessment forvalue added. In consequence, no deferred tax has been recognised for this new tax.w) Earnings per shareBasic earnings per share are calculated by dividing net earnings by the average number of sharesoutstanding during the period.Diluted net earnings per share are calculated on the basis of all shares available for issuance and thepotential savings, net of tax, from the conversion of securities conferring future rights to the capital.At the end of the period under review, potential shares available for issuance concern exclusively thoseresulting from the exercise of stock options.x) Cash flowCash flow after net finance costs and income tax represents the sum total of:- net income;- income and expense recognised directly in equity;- and calculated expenses (allowances for reserves, provisions, etc.) minus estimated reversals ofcharges;- plus proceeds from the disposal of fixed assets and other non-current financial assets;less;- the share of investment grants recorded under income.81