221
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
the cancellation of the recognition of actuarial gains and losses
in selling, administrative and general expenses, and the recording
of actuarial gains and losses generated in 2012 in items of other
comprehensive income not reclassified to profit and loss;
as from January 1, 2012, past service costs resulting from plan
amendments or curtailments are immediately recognized in
profit and loss, as selling, administrative and general expenses,
unvested rights being no longer spread over the vesting period.
As a consequence, past service costs not yet recognized as of
December 31, 2011 were recorded against consolidated equity as
of January 1, 2012, and the Consolidated Financial Statements
for the year ended December 31, 2012 were adjusted to reflect
the cancellation of the recognition of past service costs in selling,
administrative and general expenses; and
expected return on plan assets is calculated using the discount rate
retained for the valuation of the benefit obligation.
Due to the retrospective application of the amendments to IAS 19 –
Employee Benefits
, the Consolidated Financial Statements for the year
ended December 31, 2012 were adjusted for comparison purposes. A
detailed description of these adjustments is presented in Note 33.
Please note that accounting policies and valuation methods related to
employee benefit plans are presented in their entirety in Note 1.3.8.
1.1.3.
Principles of consolidation
New standards relating to the principles of consolidation: IFRS 10 –
Consolidated Financial Statements
, IFRS 11 –
Joint Arrangements
,
IFRS 12 –
Disclosure of Interests in Other Entities
, IAS 27 –
Separate
Financial Statements
, and IAS 28 –
Investments in Associates and Joint
Ventures
, as published by the IASB on May 12, 2011, were endorsed by
the EU on December 11, 2012 and published in the EU Official Journal
on December 29, 2012. These standards mandatorily apply to periods
beginning on or after January 1, 2014. However, Vivendi elected to
early apply them to the interim Financial Statements for the year 2013
and, retrospectively, as of January 1, 2012. The application of these
standards had no material impact on Vivendi’s financial statements.
New principles of consolidation introduced by these new standards are
presented in Note 1.3.2.
1.1.4.
Other
New standard IFRS 13 –
Fair Value Measurement
, relating to the
definition of the concept of fair value in terms of measurement and
disclosures, as issued by the IASB on May 12, 2011, was endorsed by
the EU on December 11, 2012 and published in the EU Official Journal
on December 29, 2012. IFRS 13 applies prospectively and mandatorily
to periods beginning on or after January 1, 2013. There has been no
significant impact on Vivendi’s valuation methods, or on the information
disclosed in the notes to the financial statements, pursuant to its
application.
Amendments to various IFRS included in the Annual Improvements to
IFRSs 2009-2011 Cycle as published by the IASB on May 2012, were
endorsed by the EU on March 27, 2013 and published in the EU Official
Journal on March 28, 2013. These amendments mandatorily apply to
periods beginning on or after January 1, 2013, retrospectively from
January 1, 2012. Their application has had no significant impact on
Vivendi’s financial statements.
1.2.
Presentation of the Consolidated Financial Statements
1.2.1.
Consolidated Statement of Earnings
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.
