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Note 1. Accounting Rules and Methods
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements | Consolidated
Financial Statements | Statutory Auditors’ Report on the Financial Statements |
Statutory Financial Statements
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Other significant events of the year
Distribution to shareholders
On June 30, 2014, Vivendi SA paid an ordinary distribution of €1 per
share to its shareholders, from additional paid-in capital for an aggregate
amount of €1,347.7 million, considered as a return of capital distribution
to shareholders.
Corporate Governance
On June 24, 2014, Vivendi’s General Shareholders’ Meeting notably
appointed three new Supervisory Board members: Ms. Katie Jacobs
Stanton, Ms. Virginie Morgon and Mr. Philippe Bénacin.
Vivendi’s Supervisory Board, which was convened immediately following
the General Shareholders’ Meeting on June 24, 2014, appointed
Mr. Vincent Bolloré as Chairman. The Board also appointed Mr. Pierre
Rodocanachi as Vice-Chairman and Mr. Jean-René Fourtou, who had
chaired the group since 2002, as Honorary Chairman. The Board appointed
Mr. Daniel Camus as Chairman of the Audit Committee, and Mr. Philippe
Bénacin as Chairman of the Corporate Governance, Nominations and
Remuneration Committee.
On June 24, 2014, the Supervisory Board also appointed the members
to the Management Board, which is comprised of Messrs. Arnaud de
Puyfontaine, who serves as Chairman, Hervé Philippe, and Stéphane
Roussel.
The Supervisory Board is currently comprised of 14 members, including
an employee shareholder representative and an employee representative.
Note 1.
Accounting Rules andMethods
1.1. General principles and change in accounting methods
The statutory financial statements for year-end December 31, 2014 have
been prepared and presented in accordance with applicable French laws
and regulations.
The accounting rules and methods applied in the preparation of these
financial statements are identical to those applied in the preparation of
the 2013 statutory financial statements.
The Company makes certain estimates and assumptions that it considers
reasonable and realistic. Such estimates and assumptions are based
on past or anticipated achievements, and relate in particular to the
measuring of asset impairment (see Note 7, Long-term Investments)
and provisions (see Note 16, Provisions) as well as to employee benefits
(see Note 1.9, Employee benefit plans). Despite regular review, facts and
circumstances may lead to changes in such estimates and assumptions,
which may impact the amount of assets, liabilities, equity or earnings
recognized by the Company.
1.2. Intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are valued at
acquisition cost.
Depreciation and amortization are calculated using the straight-line
method and, where appropriate, the declining balance method over the
useful lives of the relevant assets.
1.3. Long-term investments
Investments in affiliates and long-term securities portfolios
Shares of companies, the long-term ownership of which is deemed to
be beneficial to Vivendi’s business, are classified as equity investments.
Equity portfolio securities include securities of companies which the
Company expects to realize satisfactory returns over the medium to long
term without interfering with the management.
Investments in affiliates and long-term securities portfolios are valued
at acquisition cost, including any potential impact resulting from
related hedging transactions. If this value exceeds the value in use, an
impairment loss is recorded for the difference between the two.
Value in use is defined as the value of the future economic benefits
expected to derive from the use of an asset. This is generally calculated
by discounting the future cash flows. A more suitable method may be
used where appropriate, such as market comparables, transaction
valuations, trading comparables for listed entities or proportionate
share of equity. The value in use of securities in foreign currencies is
calculated using the exchange rate applicable on the closing date for both
listed securities (French GAAP (
Plan Comptable Général
or “PCG”) 2014,
Art. 420-3) and unlisted securities.
Vivendi expenses investment and security acquisition costs in the period
during which they are incurred.
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Annual Report 2014