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4
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
1.11. Derivative financial instruments
Vivendi uses derivative financial instruments to (i) reduce its exposure
to market risks associated with interest and foreign exchange rate
fluctuations; and (ii) secure the value of certain financial assets. These
instruments are traded over-the-counter with highly-rated counterparties.
Pursuant to Article 224 of the PCG 2014, income and expenses generated
by interest rate and currency hedging instruments are recorded with the
income and expenses of the hedged items.
Loans, borrowings, receivables and payables covered by currency hedging
instruments that set the currency at maturity are recorded at hedge rates
and no foreign exchange difference is recognized.
Unrealized gains on derivative instruments that do not qualify for hedge
accounting are not recognized. Conversely, unrealized losses on these
instruments are recorded directly in earnings.
1.12. Individual training entitlement
Law No. 2014-288, dated March 5, 2014, relating to vocational training,
employment and social democracy repeals the statutory training
entitlement system (DIF) and replaces it with the personal training
account regime (CPF) as of January 1, 2015. DIF training hours not
consumed are available for 5 years under the CPF regime. Under the new
regime, an employee may accumulate up to 150 hours of training.
The company-wide agreement entered into in May 2006 provided for the
allocation of 20 DIF training hours to each employee each year (up to a
maximum of 120 hours). As of year-end 2014, a total of 18,774 training
hours remained unused.
Pursuant to Statement 2004-F of the Emergency Committee of the
Conseil
National de la Comptabilité
(French national accounting council), Vivendi
did not record a provision for individual training entitlement as of year-
end 2014.
1.13. Tax credit to aid competitiveness and promote employment (CICE)
The CICE, which took effect on January 1, 2013, resulted in the
recognition by Vivendi of an income, recorded in operating income
under the line item “social security contributions”. The base consists
of gross compensation paid, subject to social security contributions and
not exceeding 2.5 times the minimum wage. The tax credit rate
for 2014 was 6%.
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Annual Report 2014