2013 Registration document and annual financial report - page 199

Registration Document 2013
Financial Statemements
Consolidated Financial Statements And Notes
Pension and other retirement benefit obligations take into account
the market value of plan assets. The amount recognized in the
statement of financial position corresponds to the discounted
present value of the defined benefit obligation less the fair value
of plan assets. Any surpluses, corresponding to the excess of the
fair value of plan assets over the projected benefit obligation, are
recognized only when they represent the present value of any
economic benefits available in the form of refunds from the plan
or reductions in future contributions to the plan.
Current service cost, past service cost, administrative expense, taxes
for the year, and paid contributions and benefits are recognized in
operating expense, whereas net interest on the net defined benefit
liability (asset) is recognized in financial expense (income).
For post-employment benefits, actuarial gains and losses arising
from changes in actuarial assumptions and experience adjustments
are recognized immediately in equity. However, actuarial gains and
losses on long-term benefit obligations towards active employees
(such as jubilees, seniority bonuses…) are recognized directly in
profit or loss in net financial expense.
The net defined benefit obligation is recognized in the statement
of financial position under “Non-current Provisions”.
K. Translation of foreign currency
Foreign currency transactions are recognized and measured in
accordance with IAS 21 “Effects of Changes in Foreign Exchange
Rates”. As prescribed by this standard, each Group entity translates
foreign currency transactions into its functional currency at the
exchange rate on the transaction date.
Foreign currency receivables and payables are translated into euros
at the closing exchange rate. Foreign currency financial liabilities
measured at fair value are translated at the exchange rate on the
valuation date. Gains and losses arising from translation are recognized
in “Net financial expense”, except for gains and losses on financial
liabilities measured at fair value which are recognized in equity.
L. Income taxes
Income tax expense (or benefit) includes both current and deferred
tax expense (or benefit).
Current taxes on taxable profits for the reporting period and previous
periods are recognized as liabilities until they are paid.
In accordance with IAS 12 “Income Taxes”, deferred taxes are
recognized on temporary differences between the carrying amount
of assets and liabilities and their tax base by the liability method.
This method consists of adjusting deferred taxes at each period-end,
based on the last tax rates (and tax laws) that have been enacted
or substantively enacted. The effects of changes in tax rates (and
tax laws) are recognized in the income statement for the period in
which the rate change is announced.
A deferred tax is recognized for all temporary differences, except
when it arises from the initial recognition of non-deductible goodwill
or the initial recognition of an asset or liability in a transaction
which is not a business combination and which, at the time of the
transaction, affects neither accounting profit nor taxable profit.
A deferred tax liability is recognized for all taxable temporary
differences associated with investments in subsidiaries, associates
and interests in joint ventures except when:
the Group is able to control the timing of the reversal of the
temporary difference; and
it is probable that the temporary difference will not reverse in
the foreseeable future.
A deferred tax asset is recognized for ordinary and evergreen tax
loss carryforwards only when it is probable that the asset will be
recovered in the foreseeable future based on the most recently
updated projections.
Income taxes are normally recognized in the income statement.
However, when the underlying transaction is recognized in equity,
the related income tax is also recorded in equity.
Since January 1, 2010, deferred tax assets of acquired companies
that are not recognized at the time of the business combination
or during the measurement period are recognized in profit or loss
without adjusting goodwill if they arise from a post-acquisition event.
In accordance with IAS 12, deferred taxes are not discounted.
In France, the “taxe professionnelle” local business tax was
replaced in the 2010 Finance Act by the “Contribution Économique
Territoriale” tax (CET). The CET comprises two separate taxes, a
tax assessed on the rental value of real estate (“CFE”) and a tax
assessed on the value added by the business (“CVAE”). In its 2012
and 2013 financial statements, Accor decided therefore to classify
CVAE as income tax.
The second Amended 2012 Finance Act introduced a 3% surtax on
dividends and other distributions paid by companies that are subject
to French corporate income tax.The surtax is treated as an income
tax expense arising as of the date of the Annual Shareholders’
Meeting at which the dividend is approved. The Group therefore
recognized additional income tax expense of €5.2 million in its 2013
financial statements in respect of the 2012 dividends paid in 2013.
M. Share-based payments
M.1. Share-based payments
Stock Option Plans
Accor regularly sets up option plans for executives, as well as for
senior and middle managers. IFRS 2 applies to all stock option plans
outstanding at December 31, 2013.
Nine 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 exercised period.
1...,189,190,191,192,193,194,195,196,197,198 200,201,202,203,204,205,206,207,208,209,...344
Powered by FlippingBook