SECTION 1 -

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New Services: Pro forma Financial Statements and Notes
December, 31, 2009
The assets, liabilities and contingent liabilities of subsidiaries acquired during the period are initially recognized at their fair value
at the acquisition date. Minority interests are determined based on the initially recognized fair values of the underlying assets
and liabilities.
In accordance with IAS 27 – Consolidated and Separate Financial Statements, potential voting rights held by New Services that
are currently exercisable (call options) are taken into account to determine the existence of control over the company concerned.
B. Goodwill
In the year following the acquisition of a combined company, fair value adjustments are made to the identifiable assets and
liabilities acquired. For this purpose, fair values are determined in the new subsidiary’s local currency.
In subsequent years, these fair value adjustments follow the same accounting treatment as the items to which they relate.
B. 1. POSITIVE GOODWILL
Goodwill, representing the excess of the cost of a business combination over the Group’s interest in the net fair value of the
identifiable assets and liabilities acquired at the acquisition date, is recognized in assets under “Goodwill”. Goodwill mainly
results from the expected synergies and other benefits arising from the business combination.
Goodwill arising on the acquisition of associates – corresponding to companies over which the Group exercises significant
influence – is included in the carrying amount of the associate concerned.
Goodwill arising on the acquisition of subsidiaries and jointly controlled entities is reported separately.
In accordance with IFRS 3 – Business Combinations, goodwill is not amortized but is tested for impairment at least once a year
and more frequently if there is any indication that it may be impaired. The methods used to test goodwill for impairment are
described in Note 1.D.4. If the carrying amount of goodwill exceeds its recoverable amount, an irreversible impairment loss is
recognized in profit.
B. 2. NEGATIVE GOODWILL
Negative goodwill, representing the excess of the Group’s interest in the net fair value of the identifiable assets and liabilities
acquired at the acquisition date over the cost of the business combination, is recognized immediately in profit.
C. Foreign currency translation
The presentation currency is the euro.
The balance sheets of foreign subsidiaries are translated into euros at the closing exchange rate, and their income statements are
translated at the average rate for the period. Differences arising from translation are recorded as a separate component of equity
and recognized in profit on disposal of the business.
For subsidiaries operating in hyperinflationary economies, non‐monetary assets and liabilities are translated at the exchange rate
at the transaction date (historical rate) and monetary assets and liabilities are translated at the closing rate.
In the income statement, income and expenses related to non‐monetary assets and liabilities are translated at the historical rate
and other items are translated at the average rate for the month in which the transaction was recorded. Differences arising from
the application of this method are recorded in the income statement under “Other financial income and expenses, net”.