2014 Registration Document and Annual Financial Report - page 276

Financial Statemements
Parent Company Financial Statements and Notes
In addition to these statutory benefit plans, certain employees are
members of:
a defined contribution supplementary pension plan funded by
periodic contributions to an external organization that is responsible
for the administrative and financial management of the plan as
well as for payment of the related annuities. The contributions
made by Accor under this plan are expensed as incurred;
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) Other equity
On June 30, 2014, Accor placed a €900 million issue of perpetual
hybrid bonds.The bonds have no maturity date but are first callable as
from June 30, 2020.They have been classified as “Other equity” in
the Company’s balance sheet and the €6 million issue premium has
been recorded as a deduction from the nominal amount of the debt.
The interest payable on the bonds is included in “Other borrowings”
and the related debt issuance costs are being amortized through
the income statement.
n) 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.
o) 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.
p) 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
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.
q) 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
Since 2008, Accor has accounted for performance share plans and
employee stock option plans in accordance with standard CRC
2008-15. Since 2006, each year Accor SA has launched several
stock option plans as well as performance share plans, which have
vesting periods of between two and four years. New shares will
be issued when the rights under these plans vest. Consequently,
no provision has been recorded for the cost of these plans in the
financial statements at December 31, 2014.
Registration Document 2014
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