2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statements3Note 1.5.21. General def inition of fair valueFair value is the amount for which an asset could be exchanged, ora liability settled, between knowledgeable, willing parties in an arm’slength transaction.Note 1.5.22. Classif ication of assets and liabilitiesas current and non-currentAssets that are expected to be realised in, or are intended for saleor consumption in, the Group’s normal operating cycle or withintwelve months after the balance sheet date are classified as currentassets, together with assets that are held primarily for the purposeof being traded and cash and cash equivalents. All other assets areclassified as “non-current”. Liabilities that are expected to be settledin the entity’s normal operating cycle or within twelve months afterthe balance sheet date are classified as current. The Group’s normaloperating cycle is twelve months.All deferred tax assets and liabilities are classified as non-currentassets or liabilities.Note 1.5.23. Total revenueRevenue comprises “Net sales” and “Other income”.“Net sales” include sales by the Group’s stores, self-service restaurantsand warehouses, as well as financial services, rental services, incomefrom the banking business and revenue from other miscellaneousservices rendered.“Other income” consists of revenue from the property developmentbusiness, other revenue from rendering of services, incidental revenuesand revenues from secondary activities, including fees in connectionwith the sales of travel packages, fees related to franchise-activityand sub-leases revenues.Total revenue is measured at the fair value of the consideration receivedor receivable, net of any trade discounts, volume rebates and salestaxes. It is recognised as follows:■■revenue from the sale of goods is recognised when the significantrisks and rewards of ownership of the goods are transferred to thebuyer (in most cases when the legal title is transferred), the amountof the revenue can be measured reliably and it is probable that theeconomic benefits of the transaction will flow to the Group;revenue from the sale of services, such as extended warranties,services directly related to the sale of goods and services renderedto suppliers are recognised in the period during which they areperformed. When a service is combined with various commitments,such as volume commitments, the Group analyses facts and legalpatterns in order to determine the appropriate timing of recognition.Accordingly, revenue may either be recognised immediately (theservice is considered as performed) or deferred over the periodduring which the service is performed or the commitment isachieved.If payment is deferred beyond the usual credit period and is notcovered by a financing entity, the revenue is discounted and the impactof discounting (the difference between the discounted transactionsand the cash payment), if material, is recognised in financial incomeover the deferral period.Award credits granted to customers under loyalty programmes arerecognised as a separately identifiable component of the initial salestransaction. The corresponding revenue is deferred until the awardcredits are used by the customer.Note 1.5.24. Gross profitGross profit corresponds to the difference between net sales andthe cost of goods sold.The cost of goods sold comprises the cost of purchases net ofdiscounts and commercial cooperation fees, changes in inventoryrelated to retail activities and logistics costs.Commercial cooperation fees are measured based on contractssigned with suppliers. They are billed in instalments over the year.At each year-end, an accrual is booked for the amount receivableor payable, corresponding to the difference between the value ofthe services actually rendered to the supplier and the sum of theinstalments billed during the year.Changes in inventory, which may be positive or negative, aredetermined after taking into account any impairment losses.Logistics costs correspond to the cost of logistics operations managedor outsourced by the Group, comprising all warehousing, handlingand freight costs incurred after goods are first received at one of theGroup’s stores or warehouses. Transport costs included in suppliers’invoices (e.g. for goods purchased on a “delivery duty paid” or “DDP”basis) are included in purchase costs. Outsourced transport costsare recognised under logistics costs.Note 1.5.25. Selling expensesSelling expenses consist of point-of-sale costs, as well as the cost ofproperty development work and changes in work in progress.Note 1.5.26. General and administrative expensesGeneral and administrative expenses correspond to overheads andthe cost of corporate units, including the purchasing and procurement,sales and marketing, IT and finance functions.Note 1.5.27. Pre-opening and post-closure costsWhen they do not meet the criteria for capitalisation, costs incurredprior to the opening or after the closure of a store are recognised inoperating expense when incurred.Note 1.5.28. Other operating income and expense“Other operating income and expense” covers two types of item:■■first, the effects of major events occurring during the period thatwould distort analyses of the Group’s recurring profitability. They aredefined as significant items of income and expense that are limitedin number, unusual or abnormal, whose occurrence is rare;second, items which by their nature are not included in anassessment of a business unit’s recurring operating performance,such as impairment losses on non-current assets, disposals ofnon-current assets and the impact of applying IFRS 3R and IAS27R (see note 1.5.2).Note 1.5.29. Finance costs, netFinance costs, net correspond to all income and expenses generatedby net debt during the period, including gains and losses on salesof cash equivalents, interest rate and currency hedging gains andlosses, as well as interest charges on finance leases.Registration Document 2010 | Casino Group71