07.12.2012 Views

financial report and registration document 2011 - Groupe SEB

financial report and registration document 2011 - Groupe SEB

financial report and registration document 2011 - Groupe SEB

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

The assumptions used – which mainly concern impairment tests on noncurrent<br />

assets – <strong>and</strong> the sensitivity of <strong>report</strong>ed amounts to changes in these<br />

assumptions are presented in the relevant notes to these consolidated<br />

fi nancial statements, in accordance with IAS 36.<br />

Estimates may be adjusted following any change in the circumstances on<br />

which they were based or when any new information comes to light. Actual<br />

results may differ from these estimates <strong>and</strong> assumptions.<br />

The main estimates <strong>and</strong> assumptions used to prepare the consolidated<br />

fi nancial statements concern the measurement of pension <strong>and</strong> other postemployment<br />

benefi t obligations (Note 22.1), deferred taxes (Note 1.4.9),<br />

property, plant <strong>and</strong> equipment (Note 1.4.3), intangible assets (Notes 1.4.1 <strong>and</strong><br />

10), investments in associates <strong>and</strong> other investments, impairment of current<br />

assets (Notes 1.4.5 <strong>and</strong> 1.4.6), short <strong>and</strong> long-term provisions (Notes 1.4.10<br />

<strong>and</strong> 1.4.11), certain fi nancial instruments (Note 1.4.4 - Derivative instruments)<br />

<strong>and</strong> share-based payments (Note 1.4.10).<br />

Note 1.4. ACCOUNTING POLICIES<br />

AND VALUATION METHODS<br />

The fi nancial statements of Group companies are prepared in accordance<br />

with local generally accepted accounting principles. They are restated where<br />

necessary to comply with Group accounting policies.<br />

The notes to the consolidated fi nancial statements include analyses of assets<br />

<strong>and</strong> liabilities by maturity where disclosure of this information is required<br />

under IFRS.<br />

The methods used to measure intangible assets, property, plant <strong>and</strong><br />

equipment, inventories <strong>and</strong> trade receivables are described below.<br />

1.4.1. Intangible assets<br />

A) DEVELOPMENT COSTS<br />

Under IAS 38 – Intangible Assets, research costs are recognised as an<br />

expense <strong>and</strong> development costs are recognised as an intangible asset when<br />

the Group can demonstrate (IAS 38, paragraph 57):<br />

� its intention to complete the development project;<br />

� that it is probable that the expected future economic benefi ts attributable<br />

to the asset will fl ow to the Group;<br />

� its ability to reliably measure the cost of the asset.<br />

Development costs that do not fulfi l the above criteria are expensed as<br />

incurred.<br />

In the consolidated fi nancial statements, qualifying development costs<br />

incurred after the advance design phase <strong>and</strong> before the manufacturing phase<br />

are recognised as intangible assets.<br />

Development costs are amortised on a straight-line basis over three to<br />

fi ve years, corresponding to the same useful life as that applied to specifi c<br />

tooling.<br />

Financial Report <strong>and</strong> Registration Document <strong>2011</strong><br />

5<br />

Consolidated fi nancial statements<br />

Notes to the consolidated fi nancial statements<br />

B) OTHER INTANGIBLE ASSETS<br />

Software licences <strong>and</strong> internal software development costs are recognised as<br />

intangible assets when it is probable that they will generate future economic<br />

benefi ts. They are amortised by the straight-line method over periods ranging<br />

from three to fi ve years. Other software licences <strong>and</strong> software development<br />

costs are expensed as incurred.<br />

Patents, licences <strong>and</strong> trademarks with a fi nite useful life are amortised over<br />

the shorter of the period of legal protection <strong>and</strong> their expected useful life,<br />

not to exceed fi fteen years.<br />

Trademarks with an indefi nite useful life are not amortised but are tested<br />

for impairment.<br />

C) GOODWILL<br />

Goodwill, corresponding to the excess of the Group’s interest in the net<br />

fair value of the identifi able assets <strong>and</strong> liabilities acquired in a business<br />

combination over the consideration transferred, is recognised in the<br />

balance sheet as an asset under “Goodwill”. The consideration transferred<br />

is measured as the fair value of assets transferred, equity instruments<br />

issued <strong>and</strong> liabilities incurred by the acquirer to the former owner on the<br />

acquisition date, plus any contingent consideration. In the case of a business<br />

combination achieved in stages, the difference between the carrying amount<br />

of the previously held interest <strong>and</strong> its acquisition-date fair value is recognised<br />

directly in the income statement on the acquisition date under “Other<br />

operating income <strong>and</strong> expense”.<br />

For each business combination, any non-controlling interest in the acquiree<br />

may be measured either at fair value on the acquisition date (full goodwill<br />

method) or at the non-controlling interest’s proportionate share of the<br />

acquiree’s identifi able net assets (partial goodwill method).<br />

The fair values provisionally attributed to identifi able assets <strong>and</strong> liabilities,<br />

non-controlling interests measured at fair value <strong>and</strong> the various components<br />

of the consideration transferred may be adjusted for a period of twelve<br />

months after the acquisition date. After that period, any adjustments are<br />

recognised prospectively in profi t or loss with no adjustment to goodwill.<br />

Goodwill is not amortised but is tested for impairment at least once a<br />

year. For impairment testing purposes, goodwill is allocated to a Cash-<br />

Generating Unit (CGU), defi ned as the smallest identifi able group of assets<br />

that generates cash infl ows that are largely independent of the cash infl ows<br />

from other assets or groups of assets.<br />

The method used to test CGUs for impairment is described in Note 1.4.3.<br />

When a CGU is found to be impaired, an impairment loss corresponding<br />

to the difference between the carrying amount of the goodwill <strong>and</strong> its<br />

recoverable amount is recognised as other operating expense. Impairment<br />

losses on goodwill are not reversible.<br />

Negative goodwill is recognised directly in the income statement under<br />

“Other operating income <strong>and</strong> expense” <strong>and</strong> is attributed in full to the acquirer.<br />

1.4.2. Property, plant <strong>and</strong> equipment<br />

Property, plant <strong>and</strong> equipment are initially recognised at cost <strong>and</strong> are<br />

depreciated by the straight-line method over their estimated useful lives.<br />

GROUPE <strong>SEB</strong><br />

5<br />

85

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!