2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statements3Summary of changes: IAS 27RUnder the revised version of IAS 27, consolidated financial statementsare the financial statements of a group presented as those of a singleeconomic entity with two categories of owner: the owners of the parent(Casino, Guichard-Perrachon shareholders) and the owners of thenon-controlling interests in its subsidiaries. A non-controlling interestis the equity in a subsidiary not attributable, directly or indirectly, toa parent. As a result of this new approach, transactions with theowners of non-controlling interests resulting in a change in the parentcompany’s percentage interest without loss of control only affect equityas there is no change of control of the economic entity.Accordingly, effective from 1 January 2010, in the case of anacquisition of an additional interest in a fully consolidated subsidiary,the Group recognises the difference between the acquisition costand the carrying amount of the non-controlling interests as a changein equity attributable to owners of the parent. Transaction costs arealso recognised in equity. The same treatment applies to disposalswithout loss of control.In the case of disposals of controlling interests involving a loss ofcontrol, the Group derecognises the whole of the ownership interestand recognises any investment retained in the former subsidiary atits fair value. The gain or loss on the entire derecognised interest(interest sold and interest retained) is recognised in profit or lossunder “Other operating income” or “Other operating expense”, whichamounts to remeasuring the investment retained at fair value throughprofit or loss.Impact of IAS 27R on the statementof cash fl ows (IAS 7)IAS 27R has resulted in an amendment to IAS 7 – Statement of Cashflows. Cash flows arising from the acquisition or loss of control of asubsidiary are classified as cash flows from investing activities whilecash flows arising from changes in ownership interests in a fullyconsolidated entity that do not result in a loss of control (includingincreases in percentage interest) are classified as cash flows fromfinancing activities.In prior periods, cash flows arising from changes in ownership interestwithout loss of control were classified as cash flows from investingactivities. As this amendment is applicable retrospectively, the 2009cash flow figures have been adjusted accordingly.The amendment has no impact on transactions with associates orjoint ventures, which continue to be classified as cash flows frominvesting activities.Note 1.5.3. Closing dateWith the exception of a few small subsidiaries and Cdiscount, whichclose their accounts at 31 March, Group companies all have a31 December year-end.Note 1.5.4. Consolidation of subsidiarieswhose business is dissimilarfrom that of the Group as a wholeThe financial statements of Banque du Groupe Casino are preparedin accordance with accounting standards applicable to financialinstitutions. The financial statements of Casino Ré are preparedin accordance with accounting standards applicable to insurancecompanies. In the consolidated financial statements, their assets,liabilities, income and expenses are classified based on non-industryspecificIASs and IFRSs, with customer loans included in “Tradereceivables”, refinancing of customer loans in “Other current liabilities”and banking revenue in “Revenue”.Note 1.5.5. Foreign currency translationThe consolidated financial statements are presented in euros,the Group’s functional currency. It is the currency of the principaleconomic environment in which Groupe Casino operates. Each Groupentity determines its own functional currency and all their financialtransactions are measured in that currency.The financial statements of subsidiaries that use a different functionalcurrency from that of the Group are translated according to theclosing rate method:■■assets and liabilities, including goodwill and fair value adjustments,are translated into euros at the closing rate, corresponding to thespot exchange rate at the balance sheet date;income statement and cash flow items are translated into eurosusing the average rate of the period unless significant variancesoccur.The resulting exchange differences are recognised directly within aseparate component of equity. When a foreign operation is disposedof, the cumulative amount of the exchange differences in equity relatingto that operation is reclassified to profit or loss.Foreign currency transactions are translated into euros using theexchange rate at the transaction date. Monetary assets and liabilitiesdenominated in foreign currencies are translated at the closing rateand the resulting exchange differences are recognised in the incomestatement under “Exchange gains and losses”. Non-monetary assetsand liabilities denominated in foreign currencies are translated at theexchange rate at the transaction date.Exchange differences arising on the translation of a net investmentin a foreign operation are recognised within a separate componentof equity and reclassified to profit or loss on disposal of the netinvestment.Exchange differences arising on the translation of borrowings hedginga net investment denominated in a foreign currency or on permanentadvances made to subsidiaries are recognised in equity and thenreclassified in profit or loss on disposal of the net investment.Note 1.5.6. Goodwill and intangible assetsIntangible items are recognised as intangible assets when they meetthe following criteria:■■■the item is identifiable and separable;the Group has the capacity to control future economic benefitsfrom the item;the item will generate future economic benefits.Intangible assets acquired in a business combination are recognisedas goodwill when they do not meet these criteria.Note 1.5.6.1. GoodwillAt the acquisition date, goodwill is measured in accordance withnote 1.5.2. Goodwill is allocated to the cash generating unit orgroups of cash-generating units that benefit from the synergies of thecombination, based on the level at which the return on investmentis monitored for internal management purposes. Goodwill is notamortised but is tested for impairment at each year-end, or wheneverthere is an indication that it may be impaired. Impairment losses ongoodwill are not reversible. The method used by the Group to testgoodwill for impairment is described in the note entitled “Impairmentof non-current assets”. Negative goodwill is recognised directly in theincome statement for the period of the business combination, once theidentification and measurement of the acquiree’s identifiable assets,liabilities and contingent liabilities have been verified.Registration Document 2010 | Casino Group65