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Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory 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 operates a number of companies that are leaders in content,
media, and telecommunication. Canal+ Group is the French leader in
pay-TV and is also present in francophone African countries, Poland,
and Vietnam; its subsidiary Studiocanal, is a leading European player
in the production, acquisition, distribution and, sale of films. Universal
Music Group, the world’s leader in music, recently strengthened and
diversified itself through the acquisition of EMI Recorded Music. GVT is
the leading Brazilian alternative operator. In addition, Vivendi controls
SFR, the leading alternative telecommunications operator in France.
On October 11, 2013, Vivendi deconsolidated Activision Blizzard
pursuant to the sale of 88% of its interest. Moreover, as a result of the
plans to sell Maroc Telecom Group it has been reported in Vivendi’s
Consolidated Statement of Earnings as a discontinued operation, in
accordance with IFRS 5.
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 19, 2014, 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, 2013. Having considered the Audit Committee’s
recommendation given at its meeting held on February 18, 2014, the
Supervisory Board, at its meeting held on February 21, 2014, reviewed
the Financial Report and the Consolidated Financial Statements for the
year ended December 31, 2013, as approved by the Management Board
on February 19, 2014.
On June 24, 2014, the Consolidated Financial Statements for the year
ended December 31, 2013 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 2013 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, 2013.
Vivendi applied new standards and amendments to its Consolidated
Financial Statement for the year ended December 31, 2013, the most
significant of which concern:
presentation of other items in the consolidated statement of
comprehensive income;
employee benefit plans; and
principles of consolidation.
1.1.1.
Presentation of Financial Statements
Amendments to IAS 1 –
Presentation of Financial Statements:
Presentation of Items of Other Comprehensive Income
, as published
by the IASB on June 16, 2011, were endorsed by the EU on June 5,
2012 and published in the EU Official Journal on June 6, 2012. These
amendments mandatorily apply to periods beginning on or after
January 1, 2013, with retrospective effect as from January 1, 2012.
They relate to the presentation of items of other comprehensive income
(denominated “Charges and income directly recognized in equity” in
the Consolidated Statement of Comprehensive Income), which are
henceforth grouped according to whether or not they are recycled in the
Statement of Earnings.
1.1.2.
Employee benefit plans
Amendments to IAS 19 –
Employee Benefits
as published by the IASB
on June 16, 2011, were endorsed by the EU on June 5, 2012, and
published in the EU Official Journal on June 6, 2012. These amendments
mandatorily apply to periods beginning on or after January 1, 2013, with
retrospective effect as from January 1, 2012.
The main impacts of these amendments for Vivendi are:
elimination of the “corridor method” relating to the recognition
through profit and loss for the year of actuarial gains and losses
on defined employee benefit plans: thus, actuarial gains and losses
not yet recognized as of December 31, 2011 were recorded against
consolidated equity as of January 1, 2012;
as from January 1, 2012, actuarial gains and losses are immediately
recognized in other comprehensive income in the Statement of
Comprehensive Income, and will no longer be recycled in profit and
loss. As a consequence, the Consolidated Financial Statements
for the year ended December 31, 2012 were adjusted to reflect
