Page 220 - 2012 Annual Report

220 VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Accounting policies and valuation methods 222
1.1. Compliance with accounting standards 222
1.2. Presentation of the Consolidated Financial Statements 222
1.2.1. Consolidated Statement of Earnings 222
1.2.2. Consolidated Statement of Cash Flows 222
1.2.3. Operating performance of each operating segment and
of the group 223
1.2.4. Consolidated Statement of Financial Position 224
1.3. Principles governing the preparation of the
Consolidated Financial Statements 224
1.3.1. Use of estimates 224
1.3.2. Principles of consolidation 225
1.3.3. Foreign currency translation 225
1.3.4. Revenues from operations and associated costs 226
1.3.5. Assets 228
1.3.6. Assets held for sale and discontinued operations 232
1.3.7. Financial liabilities 233
1.3.8. Other liabilities 234
1.3.9. Deferred taxes 234
1.3.10. Share-based compensation 235
1.4. Related parties 236
1.5. Contractual obligations and contingent assets and
liabilities 236
1.6. New IFRS standards and IFRIC interpretations that
have been published but are not yet effective 237
Note 2. Major changes in the scope of consolidation 237
2.1. Acquisition of EMI Recorded Music by Vivendi and
Universal Music Group (UMG) 237
2.2. Acquisition of Bolloré Group’s channels by Vivendi
and Canal+ Group 238
2.3. Strategic partnership among Canal+ Group, ITI, and
TVN in Poland 239
2.4. Other changes in the scope of consolidation 240
2.5. Acquisition of Vodafone’s 44% interest in SFR
in June 2011 240
2.6. Changes in the Group’s activities 240
Note 3. Segment data 241
3.1. Operating segment data 241
3.2. Geographic information 245
Note 4. EBIT 246
Note 5. Financial charges and income 248
Note 6. Income taxes 249
6.1. French Tax Group and Consolidated Global Profit Tax
Systems 249
6.2. Provision for income taxes 250
6.3. Provision for income taxes and income tax paid by
geographic region 250
6.4. Effective tax rate 251
6.5. Deferred tax assets and liabilities 251
6.6. Tax audits 253
Note 7. Earnings per share 253
Note 8. Charges and income directly recognized in equity 254
Note 9. Goodwill 254
Note 10. Content assets and commitments 259
10.1. Content assets 259
10.2. Contractual content commitments 260
Note 11. Other intangible assets 262
Note 12. Property, plant and equipment 263
Note 13. Intangible and tangible assets of telecom operations 264
Note 14. Investments in equity affiliates 266
Note 15. Financial assets 266
Note 16. Net working capital 267
Note 17. Cash and cash equivalents 268
Note 18. Equity 269