SECTION 1 -

163
New Services: Historical Combined Financial Statements and Notes
December, 31, 2009
- New Services cash flows were also analyzed on a basis consistent with the assumptions used to allocate assets and liabilities
to each business.
Income tax expense
French prepaid services subsidiaries were members of the tax group set up by Accor S.A. under French group relief rules (Article
223‐A of the General Tax Code). Under the group relief agreement between the tax group members, Accor S.A. is not required to
repay to the other tax group members any tax benefits derived from the use of their tax losses generated up to December 31,
2009.
The same applies to certain international subsidiaries included in local tax groups set up between New Services and Accor
Hospitality entities.
As a result, current and deferred taxes were determined without taking into account the effects of any tax consolidations within
Accor or any future tax consolidations that may be performed at the level of the New Services group.
Transactions between New Services entities and other Accor Group entities
All balances arising from routine transactions between New Services entities and other Accor Group entities are presented in the
historical combined balance sheets as receivables from and payables to third parties outside the combined group.
All loans and borrowings between New Services entities and other Accor Group entities are presented in the historical combined
balance sheets as financial assets and liabilities.
Equity
The historical combined financial statements include the financial statements of companies that did not have any capital ties at
January 1, 2007 and exclude the financial statements of companies owned by New Services entities as of January 1, 2007 that
were not engaged in prepaid services operations at that date. The adjustments were recorded as follows in the combined
financial statements:
Acquisitions
Companies owned by Accor entities as of January 1, 2007
Acquisitions of New services companies not owned by New Services entities were all treated as having been carried out on
January 1, 2007. They were recognized in the opening combined balance sheet at that date at their value on initial recognition in
the Accor Group consolidated financial statements by increasing combined equity, and any goodwill recorded on their acquisition
by the Accor Group was recognized in full in the historical combined financial statements.
For acquisitions by New Services entities from the Accor Group between January 1, 2007 and December 31, 2009 of companies
that were already included in the opening combined balance sheet at January 1, 2007, the price paid by New Services was
treated as an exceptional dividend payment to the Accor Group and recorded as a deduction from equity on the acquisition date.
Post‐January 1, 2007 acquisitions
Acquisitions of prepaid services companies were considered as having been carried out by New Services at the original date of
acquisition by the Accor Group. They were treated as an exceptional contribution by the Accor Group to New Services and
recognized by adjusting equity, in accordance with the principles applied to entities historically owned by Accor entities as
described above.
Recognition of dividends
Certain New Services companies not historically owned by New Services entities paid dividends to Accor Hospitality entities
between January 1, 2007 and December 31, 2009. These dividend payments have been maintained in the historical combined
financial statements and treated as distributions by the New Services group recognized as deductions from equity.