2013 Registration document and annual financial report - page 291

Registration Document 2013
Parent Company Financial Statements and Notes
a defined benefit supplementary pension plan under which
beneficiaries are entitled to pension benefits calculated based
on their salary and the duration of their participation in the plan.
The provision recorded for the Company’s obligation under this
plan takes into account any amounts funded through an external
organization (plan assets).
l) Plain vanilla bonds
For plain vanilla bonds issued at a discount to face value, the
difference between the issue proceeds and the face value of the
bonds is amortized on a straight-line basis over the life of the bonds.
m) Foreign currency transactions
Income and expenses in foreign currencies are converted into euros
at the exchange rate prevailing on the transaction date.
Payables, receivables and cash balances in foreign currencies are
converted at the year-end exchange rate.
Translation differences are recorded in the balance sheet.
No provision for exchange losses is recorded for loans and borrowings
denominated in the same currency with broadly equivalent maturities.
n) Currency risks
Currency risks arising on the conversion of euro cash reserves into
foreign currencies to meet part of the financing needs of foreign
subsidiaries are hedged by currency swaps with the same maturities
as the loans to subsidiaries.
o) Corporate income tax
Accor has elected for group relief in application of the French Act
of December 31, 1987. Under the Group relief system, tax losses
of companies in the tax group can be netted off against the profits
of other companies in the Group, provided that certain conditions
are met. The applicable tax rules are defined in Articles 223 A et
seq. of the French General Tax Code.
Each company in the tax group records in its accounts the tax
charge it would have incurred if it had been taxed on a standalone
basis. The group relief benefit or charge is recorded in the balance
sheet of Accor SA as head of the tax group.
In accordance with tax regulations applicable since January 1, 2005,
provisions for unrealized long-term losses on securities are not offset
against unrealized capital gains on the same class of investments.
p) Stock options and performance shares
In compliance with the «Fillon 3 Act», the Company uses the fair
values of stock options and performance shares measured in
accordance with IFRS 2 as the basis for calculating the related
contribution sociale surtax.
Since 2008, Accor has accounted for performance shares in accordance
with standard CRC 2008-15. In March 2009, February 2010, April
2011, March 2012 and April 2013, Accor SA set up performance
share plans for certain Group employees with a two-year vesting
period, and will therefore issue new shares when the rights vest.
Consequently, no provision has been recorded for the cost of these
plans in the financial statements at December 31, 2013.
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