2007 - April

2.0
Notes to the consolidated financial statements at December 31 st 2007
The Group’s commitments, resulting from the defined benefit
systems, are determined in accordance with the projected
credit unit method as per IAS 19. These commitments
primarily concern retirement benefits.
Since these systems are non-financed, commitments relating
to retirement benefits valued based on the likely fair value
of the rights acquired, taking into consideration the legal
provisions and national wage bargaining agreements in force,
based on actuarial hypotheses primarily factoring in wage
rises through to retirement age, staff turnover and mortality
tables. The commitments calculated in this way are booked
as provisions for contingencies and losses.
Actuarial differences primarily reflect changes in the assumptions
used. Such differences are recorded immediately
on the income statement.
The cost of past services is recorded directly against earnings
as soon as entitlements to benefits are acquired.
1.27. Financial liabilities
Financial liabilities correspond to the following elements:
Either a contractual obligation to provide another company
with cash or another financial asset,
Or a contract that will or may result in treasury stock being
awarded.
Or investment contracts without any discretionary profitsharing.
The Group records financial liabilities when it becomes a
party to the contract in question, i.e. on the date on which
operations are committed to.
The Group’s financial liabilities are recorded on a cost basis,
with the exception of commitments to buy out minority
interests (cf. Note 1.28) and investment contracts without
any discretionary profit-sharing, since the impact of using
the amortized cost method is not significant.
Investment contracts without any discretionary profit-sharing
are marked to market. Their fair valuation is booked directly
against earnings.
1.28. Commitments to buy out minority interests
When taking control of companies included in the basis
for consolidation at December 31 st , 2007, APRIL GROUP
or its consolidated subsidiaries have in certain cases made
commitments to purchase interests in the capital held by such
companies’ minority shareholders. In accordance with IAS 32,
purchase commitments given relative to fully consolidated
subsidiaries are recorded under «financial liabilities». The
counterparty of such financial liabilities is not specified under
IFRS. This point has been referred to the IFRIC. Pending the
IFRIC’s response, APRIL GROUP has opted to record the
difference between the fair value of financial liabilities and
the amount of minority interests cancelled in shareholders’
equity under goodwill.
Under IAS 39, financial liabilities are valued on a fair value
basis. The formulae for valuing clauses to buy out stakes held
by minority shareholders in consolidated subsidiaries are
based on these companies’ economic performances as on
the date on which the option is exercised.
Such formulae are generally based on profitability and
development criteria.
These options may generally be exercised after several years
and within a timeframe set upon acquisition.
Since it may not be possible to determine the fair value of
such financial liabilities in the absence of sufficiently reliable
forecasts or active markets, the following method is applied:
A three-year period following the close of accounts or the
interim situation is determined in order to have quantified
forecasts that may be considered sufficiently reliable,
Commitments taking effect during this period are valued
and recorded by APRIL GROUP,
Commitments taking effect after this period may not
be valued on a reliable basis and are not recorded. Such
commitments are presented in Note 12 Off-balance sheet
commitments.
As such, the commitments to enter into effect in 2008, 2009
and 2010 are recorded as at December 31 st , 2007.
Changes in the fair value of buyout commitments are
recorded at close of accounts for the following periods
against goodwill.
The treatment retained may be modified in light of changes
in IFRS and their interpretations.
1.29. Tax
In accordance with IAS 12 “Income taxes”, deferred taxes are
recorded as soon as any timing differences appear between
the book and tax values of assets and liabilities, as well as on
recoverable tax losses.
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