YEAR 2008 - SDF

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56 ANNUAL REPORT 2008 Notes to the consolidated financial statements 2008 Financial Year The recoverable value of a fixed asset is the higher of its going concern value and its fair value, net of disposal costs. The going concern value of a fixed asset is the discounted value of the future cash flows expected from the use of the fixed asset. Fixed assets that do not produce sufficiently autonomous cash flows are grouped into cashflow generating units corresponding to the smallest groups of fixed assets producing autonomous cash flows. Consolidated goodwill is allocated to cashflow generating units that benefit from synergies from mergers between the corresponding companies. Future cash flows expected from a fixed asset or cashflow generating unit are calculated using a 5-year business plan and a terminal value determined by the capitalisation of a normative flow obtained by extrapolating the most recent flow of the explicit horizon of the business plan, modified by a growth rate specific to the business concerned. The flows obtained are discounted at a determined rate, based on the weighted average cost of the Group’s capital. Future cash flows expected from a fixed asset or cashflow generating unit are calculated using a 5-year business plan and a terminal value determined by the capitalisation of a normative flow obtained by extrapolating the most recent flow of the explicit horizon of the business plan, modified by a growth rate specific to the business concerned. The flows obtained are discounted at a determined rate, based on the weighted average cost of the Group’s capital. 2.7 INVENTORIES The main inventories comprise fuel, spare parts, commercial packaging and consumables. They are valued at the acquisition cost. Damaged inventory is subject to depreciation, calculated according to their probable realisable value. 2.8 NON-CURRENT ASSETS HELD WITH A VIEW TO DISPOSAL Non-current assets (or groups of assets and liabilities held with a view to disposal) whose book value will be recoverable mainly through a sale rather than by their continuous use, are classified in the balance sheet as assets held with a view to disposal. Once classed under this heading, they are recorded at the lower of their book value and their fair value, minus sales costs. Amortisable intangible fixed assets and tangible fixed assets are no longer amortised from when they are recorded as assets held with a view to disposal. 2.9 CORPORATE INCOME TAX Corporate income tax expenses (or income) comprise, on the one hand, tax due for the financial year, and secondly, expenses or income from deferred taxes. Tax is recorded in income unless it is attached to elements recorded directly as shareholders’ equity, in which case it is recorded in shareholders’ equity. Deferred taxes are calculated for each fiscal entity when there is a temporary discrepancy between the book values of assets and liabilities and their tax values. They are calculated by applying the tax rate in force when the temporary discrepancies are resolved, on the basis of tax legislation adopted or almost adopted on the closing date. Deferred tax assets are only booked if it is likely that the tax entities concerned will have future taxable profits against which these assets can be entered. They are examined at each closing date and, where applicable, reduced in proportion to the part which could probably no longer be recorded against taxable future profits. 2.10 EMPLOYEE BENEFITS Post-employment benefits The fixed payout post-employment benefits granted by the Group are made up of the retirement payments made when employees retire and are determined in light of the employee's final salary and seniority. The corresponding commitments are booked as liabilities as and when entitlement is accrued, using the actuarial method of projected credit units applied to an estimate of the salaries at the time the indemnities will be paid. The fair value of the funds paid to insurance companies to cover the commitments is deducted from the liabilities. Actuarial discrepancies that are the result of changes in hypotheses or differences between projections and the amounts paid are not immediately recorded as income, but are deferred using the "corridor" method. According to this method, actuarial discrepancies are only
Notes to the consolidated financial statements 2008 Financial Year ANNUAL REPORT 2008 amortised when their aggregate amount exceeds a threshold equal to 10% of the actuarial debt or the fair value of the amounts set aside, if the latter amount is higher. The amortisation is determined using the straight-line method over the average residual period of activity of scheme beneficiaries. Other long-term benefits The Group pays bonuses in addition to granting length of service medals, which are booked as and when entitlement is accrued, and are evaluated under the same conditions as retirement payments. However, any resulting actuarial discrepancies are immediately booked as income. Commitments in terms of retirement payment plans and length of service medals are assessed by an independent actuary. 2.11 NON-DERIVATIVE FINANCIAL ASSETS Financial liabilities include loans, financial liabilities and debts generated by operating transactions (trade notes and other liabilities). When initially recorded, they are evaluated at their fair value, net of transaction costs. In the case of operating debts, because of their very brief maturity times, their fair value corresponds to the nominal value. Financial liabilities are later evaluated at the amortised cost, using the effective interest method. Composed instruments Some composed financial instruments contain both a debt component and an equity component. The two components are booked separately, the first as debt and the second as equity, and determined in the following manner: Debt component The debt component is evaluated at its date of issue on the basis of the fair value of a similar instrument which presents the same characteristics (maturity, cashflow) but does not include an option to convert or redeem in shares. This value corresponds to the value of future contractual cash flows (including the coupon and redemptions), discounted at market rate (taking the credit risk at issue into account).. Equity component The equity component represents the value of the option to convert or redeem in shares. It is determined by taking the difference between the value of the debt component, determined using the method described above, and the income from the issue of the loan. 2.12 DERIVATIVE INSTRUMENTS The Group uses derivative instruments to hedge interest rate risk on its debts. They are initially recorded at their fair value. Even when the Group's objective is to cover risk economically, some derivatives do not fulfil the conditions laid down by IAS 39 in order to qualify as compatible hedging instruments. In this case, later variations in value are recorded under income. When it is possible to qualify a derivative as a hedging instrument, later variations in fair value are booked as follows: • If it involves a fair value hedge (exchange of fixed interest rate flows against variable flows), the variations are recorded under income, under the same heading as fair value variations in hedged debt; • If it involves hedging future cash flows (exchange of variable interest rate flows against fixed flows), then the latter are recorded directly under shareholders' equity for the effective part of the hedge, and are then transferred to "income" when the interest flows being hedged are booked as expenses. 2.13 PROVISIONS Provisions are debts for which the maturity dates or the amount carries a certain degree of uncertainty. Provisions are booked when the Group has to deal with an obligation that is current, legal or implicit, that results from past events, when the obligation can be reliably estimated and when it is likely that the result will be an outflow of funds representing an economic advantage. Provisions are evaluated at the most likely amount to be paid out. 57
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2 0 0 8 A N N U A L R E P O R T
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CONTENTS ANNUAL REPORT 2008 T H E E
Page 5 and 6:
CHAIRMAN'S MESSAGE ANNUAL REPORT 20
Page 7 and 8: GENERAL CONTEXT GROUP ENVIRONMENT E
Page 9 and 10: GROUP ENVIRONMENT MARKET TRENDS IN
Page 11 and 12: THE GROUP AS A WHOLE IS STRUCTURED
Page 13 and 14: GROUP BUSINESS THE TRANSPORTATION U
Page 15 and 16: GROUP BUSINESS THE LOGISTICS UNIT T
Page 17 and 18: GROUP BUSINESS EUROPEAN AFFAIRS Eur
Page 19 and 20: GROUP BUSINESS EUROPEAN AFFAIRS POR
Page 21 and 22: GROUP BUSINESS OTHER ACTIVITIES MAR
Page 23 and 24: GROUP BUSINESS SUSTAINABLE DEVELOPM
Page 35 and 36: GROUP RISKS MARKET RISKS Interest r
Page 37 and 38: THE GROUP CONSOLIDATED FINANCIAL ST
Page 39 and 40: THE GROUP PARENT COMPANY'S RESULTS
Page 41 and 42: THE GROUP THE BOARD OF DIRECTORS on
Page 43 and 44: THE GROUP THE BOARD OF DIRECTORS CO
Page 45 and 46: THE GROUP THE BOARD OF DIRECTORS Ch
Page 47 and 48: THE GROUP THE BOARD OF DIRECTORS CO
Page 49 and 50: THE GROUP OUTLOOK FOR 2009 2009 sta
Page 51 and 52: Consolidated financial statements A
Page 53 and 54: Consolidated financial statements T
Page 55 and 56: Notes to the consolidated financial
Page 57: Notes to the consolidated financial
Page 81 and 82: CHAIRMAN’S REPORT concerning the
Page 83 and 84: CHAIRMAN’S REPORT RULES AND GUIDE
Page 85 and 86: CHAIRMAN’S REPORT These regional
Page 87 and 88: CHAIRMAN’S REPORT the subsidiarie
Page 90 and 91: 100 ANNUAL REPORT 2008 For further
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YEAR 2008 - SDF

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