336
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 Rules and Methods
1.5
Marketable securities
Treasury shares
1.6
Deferred charges relating to financial
instruments
Issue costs in relation to bonds and lines of credit are amortized equally
over the term of such instruments.
1.7
Provisions
A provision is recorded where Vivendi has an obligation to a third
party and it is probable or certain that an outflow of resources will be
necessary to settle this obligation, without receipt of an equivalent
consideration from the third party.
The provision is equal to the best estimate, taken at period-end, of the
outflow of resources necessary to settle the obligation, where the risk
exists at the end of the period.
The assumptions underlying the provisions are regularly reviewed and
any necessary adjustments are recorded.
Where it is not possible to provide a reliable estimate for the amount of
the obligation, a provision is not recorded and disclosure is made in the
notes to the financial statements (please refer to Note 24, Litigation).
1.8
Stock option plans and performance share plans
When the Company grants performance shares or establishes a stock
purchase option plan that is settled by the delivery of treasury shares, a
provision is recognized. This provision is calculated based on the market
price of Vivendi shares at grant date or the estimated share purchase
price at year-end. In the case of stock purchase option plans, the entry
cost or estimated share purchase price is reduced by the exercise price
that is likely to be paid by employees.
Pursuant to the PCG, expenses, charges and reversals in relation to the
grant of stock options and performance shares to company employees,
are recorded as personnel costs.
Treasury shares purchased either for sale to Group employees upon
exercise of stock purchase options or for allotment to employees as
performance shares, are recorded as Marketable securities.
At year-end, the shares allocated to specific plans are not depreciated
but are subject to a provision (please see “Provisions” below). For those
shares not allocated to specific plans, an impairment loss is recognized,
as applicable to reduce their net value down to their stock market value
based on of the average share price during the month of closing.
Other marketable securities
All other marketable securities are recorded at acquisition cost.
A provision is recorded if the estimated trading value at the end of the
period is less than the acquisition cost. The value in use of securities
in foreign currencies is calculated using the exchange rates applicable
on the closing date.
