SECTION 1 -

Notes to the Pro forma Financial Statements
Note 1. Summary of Significant Accounting Policies
New Services: Pro forma Financial Statements and Notes
December, 31, 2009
The pro forma financial statements have been prepared in a format that is compatible with the accounting policies and methods
that New Services will apply in its next financial statements.
General framework
As required by European Commission regulation 1606/2002/EC dated July 19, 2002, the “Basis of Preparation” note above, which
should be read in conjunction with the same note on the historical combined financial statements, describes how the
International Financial reporting Standards (IFRSs) adopted by the European Union have been applied for the preparation of the
historical combined financial statements and the pro forma financial statements at December 31, 2009. These pro forma financial
statements include comparative financial information for 2008 and 2007, prepared in accordance with the same combination
principles and conventions and the same standards.
New Services has prepared its financial statements for the year ended December 31, 2009 in accordance with IFRS 1 – First‐Time
Adoption of International Financial Reporting Standards.
When, as in the case of New Services, a subsidiary becomes a first‐time adopter after its parent, IFRS 1 stipulates that the
carrying amounts of its assets and liabilities should be the same in both its own opening IFRS balance sheet and in its parent's
consolidated balance sheet (except for adjustments for consolidation procedures). Alternatively, the subsidiary may measure all
its assets or liabilities based on its own date of transition to IFRSs. In this latter case, the options applied by the subsidiary under
IFRS 1 may be different from those applied by its parent.
New Services has chosen to prepare its opening IFRS financial statements based on the carrying amounts of its assets and
liabilities in Accor's consolidated balance sheet (except for adjustments for consolidation procedures). Consequently, New
Services has selected the same options under IFRS 1 as those applied by the Accor Group.
The following transitional provisions of IFRS 1 have been applied on first‐time adoption of IFRSs:
o Business combinations: Business combinations recorded prior to January 1, 2004 – the date of the Accor Group's
transition to IFRS – have not been restated.
o Cumulative translation differences: New Services' cumulative translation differences were reset to zero by adjusting
retained earnings in the Accor Group's opening balance sheet at the IFRS transition date. Consequently, the translation
reserve included in equity corresponds to cumulative translation differences for the period from January 1, 2004.
o Financial instruments: New Services' financial instruments were designated as either financial assets at fair value
through profit or loss or available‐for‐sale financial assets at the date of the Accor Group's transition to IFRS.
The following exemptions from other IFRSs were not applied in the opening balance sheet at the IFRS transition date:
o Property, plant and equipment and intangible assets were not measured at fair value at the transition date.
o IFRS 2 was not applied to equity instruments granted before November 7, 2002 or to equity instruments granted after
November 7, 2002 that had not vested at January 1, 2005.
Currently applicable standards, amendments and interpretations
At December 31, 2009, the accounting standards and interpretations adopted by the European Union were the same as
International Financial Reporting Standards (including IFRSs, IASs and SIC and IFRIC Interpretations) published by the
International Accounting Standards Board (“IASB”) and applicable at that date, with the exception of:
o IAS 39, which was only partially adopted.
o IFRIC 12 – Service Concession Arrangements, which is applicable for annual periods beginning after March 29, 2009.
o IFRIC 15 – Agreements for the Construction of Real Estate, which is applicable for annual periods beginning after
December 31, 2009.
o IFRIC 16 – Hedge of a Net Investment in a Foreign Operation, which is applicable for annual periods beginning after
June 30, 2009.
o IFRIC 18 – Transfers of Assets from Customers, which is applicable for annual periods beginning after October 31, 2009.
These differences between the standards and interpretations published by the IASB and those adopted by the European Union
do not have a material impact on New Services' financial statements because application of this Standard and these
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