Page 222 - 2012 Annual Report

222 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
Note 1 Accounting policies and valuation methods
Vivendi is a limited liability company (société anonyme) incorporated
under French law, subject to French commercial company law and, in
particular, the French Commercial Code (Code de commerce). Vivendi
was incorporated on December 18, 1987, for a term of 99 years expiring
on December 17, 2086, except in the event of an early dissolution or
unless the term is extended. Its registered office is located at 42 avenue
de Friedland - 75008 Paris (France). Vivendi is listed on Euronext Paris
(Compartment A).
Vivendi is at the heart of the worlds of content, platforms and interactive
networks and combines the world’s leader in video games (Activision
Blizzard), the world’s leader in music (Universal Music Group), the French
leader in alternative telecoms (SFR), the Moroccan leader in telecoms
(Maroc Telecom Group), the leading alternative broadband operator in
Brazil (GVT) and the French leader in pay-TV (Canal+ Group).
The Consolidated Financial Statements reflect the financial and accounting
situation of Vivendi and its subsidiaries (the “group”) together with
interests in equity affiliates. Amounts are reported in euros and all values
are rounded to the nearest million.
On February 18, 2013, during a meeting held at the headquarters of the
company, the Management Board approved the Financial Report and
the Consolidated Financial Statements for the year ended December 31,
2012. Having considered the Audit Committee’s recommendation given
at its meeting held on February 15, 2013, the Supervisory Board, at its
meeting held on February 22, 2013, reviewed the Financial Report and the
Consolidated Financial Statements for the year ended December 31, 2012,
as approved by the Management Board on February 18, 2013.
On April 30, 2013, the Consolidated Financial Statements for the year
ended December 31, 2012 will be submitted for approval at Vivendi’s
Annual General Shareholders’ Meeting.
Note 1. Accounting policies and valuation methods
1.1. COMPLIANCE WITH ACCOUNTING STANDARDS
The 2012 Consolidated Financial Statements of Vivendi SA have been
prepared in accordance with International Financial Reporting Standards
(IFRS) as endorsed by the European Union (EU), and in accordance with
IFRS published by the International Accounting Standards Board (IASB)
with mandatory application as of December 31, 2012.
1.2. PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
The main line items presented in Vivendi’s Consolidated Statement of
Earnings are revenues, income from equity affiliates, interest, provision
for incomes taxes, earnings from discontinued or held for sale operations,
and earnings. The Consolidated Statement of Earnings presents a subtotal
for Earnings Before Interest and Tax (EBIT) equal to the difference between
charges and income (excluding those financing activities, equity affiliates,
discontinued or held for sale operations, and income taxes).
The charges and income related to financing activities consist of interest,
income from investments, as well as other financial charges and income
as defined in paragraph 1.2.3 and presented in Note 5.
1.2.2. Consolidated Statement of Cash Flows
Net cash provided from operating activities
Net cash provided from operating activities is calculated using the indirect
method based on EBIT. EBIT is adjusted for non-cash items and changes in
net working capital. Net cash provided from operating activities excludes
the cash impact of financial charges and income and net changes in
working capital related to property, plant and equipment, and intangible
assets.
Net cash used for investing activities
Net cash used for investing activities includes changes in net working
capital related to property, plant and equipment, and intangible assets as
well as cash from investments (particularly dividends received from equity
affiliates). It also includes any cash flows arising from the gain or loss of
control of subsidiaries.
1.2.1. Consolidated Statement of Earnings