SECTION 1 -

Notes to the Historical Combined Financial Statements
Basis of preparation
In 2009, the Accor Group initiated a major strategic project involving the demerger of its two core businesses, Hospitality and
Services. As part of this process, on August 26, 2009 the Board of Directors approved the recommendation made by Gilles
Pelisson, Chairman and Chief Executive Officer, to conduct a review of the potential benefits of demerging the two businesses
into two self‐managing companies, each with their own strategy and resources for growth. On December 15, 2009, based on the
review conducted by senior management, the Board of Directors concluded that the project would offer real benefits and on
February 23, 2010, it presented the process for demerging the businesses and creating two new listed companies, Accor
Hospitality and New Services (name temporarily given to the Accor Services businesses), without any capital ties between them.
The demerger is subject to approval at the Shareholders’ Meeting of June 29, 2010.
In order to create a separate, self‐managing group, a certain number of assets have been or will be transferred between Accor
Group entities prior to New Services being listed.
The New Services group will thus be created by transferring shares between holding companies that are subsidiaries of Accor S.A.
without modifying Accor’s direct or indirect interests in the companies concerned. These business combinations between
companies under common control – some of which have already been carried out – are excluded from the scope of application of
IFRS 3 – Business Combinations and are therefore accounted for at the net book value of these companies’ assets and liabilities in
the Accor Group’s consolidated financial statements.
In connection with the initial public offering of New Services shares, to present an economic view of the New Services business as
a whole, historical combined financial statements have been prepared for the years 2007, 2008 and 2009 based on the financial
statements historically included in the consolidated financial statements of the Accor Group.
IFRSs do not include any guidance on preparing combined financial statements and the combination principles and conventions
described below are therefore based primarily on section VI of France’s Comité de la Réglementation Comptable standard CRC
99‐02. This section (Basis of preparation) describes how the IFRSs adopted by the European Union have been applied to prepare
the historical combined financial statements.
These combined financial statements are not necessarily indicative of the consolidated financial statements that would have
been prepared if New Services had been created at an earlier date than the actual or planned creation date.
They provide an indicative view of the New Services businesses’ historical operations within the Accor Group and do not reflect
the post‐merger economic situation as presented in the pro forma financial statements, particularly as regards the level of debt.
Scope of combination
The historical combined financial statements include the companies owned directly or indirectly by New Services entities and
companies owned by Accor Hospitality entities that operate in the services sector. Following the same logic, companies owned by
New Services entities that do not operate in the services sector have been excluded from the scope of combination.
Some Accor Group companies – mainly in Argentina and Switzerland – were engaged in both New Services businesses and
hospitality businesses during the period presented. In order to combine only their New Services operations, the other businesses
were carved out of the individual financial statements of the companies concerned.
The method used to allocate their prepaid services operations to the New Services group was as follows:
- Assets and liabilities corresponding to the New Services business were identified and recognized in the combined financial
statements by adjusting equity.
- Income and expenses were allocated by reference to existing cost accounting data that was already analyzed by operating
activity, with the amounts directly attributable to the New Services business identified separately. Certain items of income
and expense not directly attributable to the New Services business (mainly general and administrative expenses) that were
recorded in a New Services reporting entity by Accor SA, were analyzed in detail and allocated on a basis consistent with the
assumptions used to allocate assets and liabilities to each business. The expenses do not include the additional corporate
costs that New Services will incur as an independent listed group and that will be recorded in the pro forma accounts.
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