SECTION 1 -

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New Services: Historical Combined Financial Statements and Notes
December, 31, 2009
1) A tax assessed on the rental value of real estate ("CFE"). Similar to the "taxe professionnelle", it fulfills the criteria for
recognition as an operating expense.
2) A tax assessed on the value added by the business ("CVAE"), which has some of the characteristics of a tax on income,
as defined in IAS 12.
In a press release dated January 14, 2010, France’s National Accounting Board, the Conseil National de la Comptabilité, stated
that each business should exercise its own judgment to determine the accounting classification of the CVAE.
In March 2006 and March 2009, the IFRIC stated that income taxes are defined as taxes that are based on taxable profit, and that
the term ‘taxable profit’ implies a notion of a net rather than a gross amount. Additionally, because taxable profit is not the same
as accounting profit, taxes do not need to be based on a figure that is exactly accounting profit to be within the scope of IAS 12.
Value added used to calculate the CVAE is a net amount, not a gross amount. Moreover, experience shows that certain foreign
taxes assessed on the basis of profit indicators other than profit before tax are generally qualified as income taxes under IAS 12.
Examples exclude Germany’s Gewerbesteuer tax and Italy’s IRAP tax. In the interests of consistency, New Services has therefore
decided to consider that the CVAE falls within the scope of IAS 12. The analyses performed by the Group nevertheless showed
that the deferred tax liability to be recognized at December 31, 2009 was not material. Consequently, no deferred tax liability
was recorded at that date.
N. Share‐based payments
N.1 STOCK OPTION PLANS
In accordance with the transitional provisions of IFRS 1 – First‐time Adoption of International Financial Reporting Standards,
compensation cost is recognized only for grants of shares, stock options or other equity instruments that were made after
November 7, 2002 and had not yet vested at January 1, 2005. No compensation cost is recognized for plans dating back prior to
November 7, 2002.
IFRS 2 applies to twelve stock option plans set up between 2003 and December 2009. Eleven of these plans do not have any
specific vesting conditions except for the requirement for grantees to continue to be employed by the Group at the starting date
of the exercise period. One plan is a performance option plan with vesting conditions other than market conditions. As for the
other plans, grantees must still be employed by the Group at the starting date of the exercise period.
The service cost representing consideration for the stock options is recognized as an expense over the vesting period by adjusting
equity. The expense recognized in each period corresponds to the fair value of the services received at the grant date, as
determined using the Black & Scholes option‐pricing model. The grant date is defined as the date when the plan's terms and
conditions are communicated to Group employees and corresponds to the date on which the Board of Directors approved these
plans. Under IFRS 2, vesting conditions other than market conditions are not taken into account when estimating the fair value of
the services received. However, they are taken into account by adjusting the number of equity instruments included in the
measurement of the transaction amount, so that, ultimately, the amount recognized for services received as consideration for
the equity instruments granted is based on the number of equity instruments that eventually vest.
When the options are exercised, the cash settlement is recorded in cash and cash equivalents and in equity. The amount
recognized in equity is allocated between "Share capital" and "Additional paid‐in capital".
N.2 EMPLOYEE STOCK OWNERSHIP PLAN
IFRS 2 also applies to employee benefits granted through the employee stock ownership plans to the extent that shares are
purchased at a discount by participating employees. Accordingly, when rights under the plan are exercisable at a price that is less
than the fair value of the shares at the grant date, an expense is recognized immediately or over the vesting period, as
appropriate.
The Group's employee stock ownership plans enable employees to invest in stock at a discounted price. The share purchase price
before the discount is based on the average of the prices quoted for Accor stock over the twenty trading days preceding the
grant date. The shares are subject to a five‐year lock‐up.