SECTION 1 -

The fair value of the employee benefit is measured by reference to:
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New Services: Pro forma Financial Statements and Notes
December, 31, 2009
- The discount reflected in the purchase price.
- The cost represented by the lock‐up clause. This cost, which is calculated only for shares financed directly by employees
and not for any shares financed by a bank loan, is measured by discounting the discount over five years at a rate
corresponding to the risk‐free interest rate.
- The grant date, defined as the date when the plan's terms and conditions are communicated to Group employees,
corresponding to the first day of the subscription period.
The employee benefit is measured as the difference between the fair value of the acquired shares and the price paid by
employees at the subscription date, multiplied by the number of shares subscribed.
The fair value, determined as described above, is recognized in full in "Employee benefits expense" at the end of the subscription
period, by adjusting equity.
N.3 PERFORMANCE SHARE PLANS
Performance share plans are also accounted for in accordance with IFRS 2. The recognition and measurement principles are the
same as those applied to stock option plans except for the measurement of the performance share plan cost which corresponds:
- For the 2007 and 2008 plans, to the average of the share prices for the twenty trading days preceding the grant date
multiplied by the number of shares granted under the plan.
- For the 2009 plan, to the opening share price on the grant date less the discounted present value of unpaid dividends,
multiplied by the number of shares granted under the plan.
O. Service vouchers in circulation
Service vouchers in circulation or returned to New Services but not yet reimbursed to affiliates are recognized as short‐term
liabilities at face value.
P. Financial instruments
Financial assets and liabilities are recognized and measured in accordance with IAS 39 – Financial Instruments, Recognition and
Measurement, and its amendments.
Financial assets and liabilities are recognized in the balance sheet when the Group becomes a party to the contractual provisions
of the instrument.
P.1. FINANCIAL ASSETS
Financial assets are classified between the three main categories defined in IAS 39, as follows:
- "Loans and receivables" mainly comprise time deposits and loans to non‐combined companies. They are initially recognized
at fair value and are subsequently measured at amortized cost at each balance‐sheet date. If there is an objective indication
of impairment, an impairment loss is recognized at the balance‐sheet date. The impairment loss – corresponding to the
difference between the carrying amount and the recoverable amount (i.e. the present value of expected cash flows
discounted using the original effective interest rate) – is recognized in the income statement. This loss may be reversed if
the recoverable amount increases in a subsequent period.
- "Held‐to‐maturity investments" mainly comprise bonds and other marketable securities intended to be held to maturity.
They are initially recognized at fair value and are subsequently measured at amortized cost at each balance‐sheet date. If
there is an objective indication of impairment, an impairment loss is recognized at the balance‐sheet date. The impairment
loss – corresponding to the difference between the carrying amount and the recoverable amount (i.e. the present value of
expected cash flows discounted using the original effective interest rate) – is recognized in the income statement. This loss
may be reversed if the recoverable amount increases in a subsequent period.
For these two categories, initial fair value is equivalent to acquisition cost, because no material transaction costs are incurred.
- "Available‐for‐sale financial assets" mainly comprise investments in non‐combined companies, mutual fund units and money
market securities. These assets are measured at fair value, with changes in fair value recognized in equity. The fair value of
listed securities corresponds to market price (level 1 valuation technique) and that of mutual funds corresponds to their
published net asset value (level 1 valuation technique). For unlisted securities, fair value is estimated based on the most