Annual Report 2011 - Analist.be

Non-current assets held for sale and discontinued operationsWhen, at the end of the reporting period, it is highly likely thatnon-current assets or groups of directly related assets andliabilities will be disposed of, they are designated as noncurrentassets or groups of assets held for sale. Their sale isconsidered highly likely if, on the balance sheet date, a planto put them up for sale at a reasonable price in relation totheir fair value has been organised in order to find a buyerand finalise their transfer within one year at most. Non-currentassets or groups of assets held for sale are presented asseparate items in the financial statements. They are no longerdepreciated and are valued at the lower of carrying value or fairvalue less costs to sell. Non-current assets or groups of assetsthat will be shut down and not sold constitute non-currentassets that are to be abandoned. When non-current assetsthat are sold, held for sale or to be abandoned correspondto one or more CGUs (cash-generating units) and must beabandoned in the framework of a single and coordinated plan,they are considered discontinued operations and their relatedflows are placed in a separate presentation in the consolidatedstatement of comprehensive income and in the consolidatedcash flow statement.Other financial assetsBonds considered as investments held to maturity (subjectto the Group has the expressed intention and the ability tohold them to maturity) and the other loans and receivablesissued by the Group are valued at their amortized cost, i.e. theamount at which they were initially recorded in the accountsplus or minus the accumulated amortization of any differencebetween this initial amount and the amount at maturity,and less any amounts recorded for impairment or nonrecoverability.These bonds and other loans and receivablesare recorded under the heading “Other current assets” or“Other non-current assets” in terms of their maturity.Trading assets include other instruments held for transactionpurposes and are valued at fair value at the balance sheetdate. Changes in fair value between two balance sheet datesare recognised in profit or loss.Cash and cash equivalentsCash and cash equivalents include bank deposits and fixedterminvestments with a maturity date equal or of less than threemonths from the acquisition date.InventoriesInventories are recorded as assets at the date on which therisks, rewards and control are transferred to the Group. Atthe time of sale, their disposal is accounted for through anexpense at the same date as the corresponding income.Inventories are valued at the lower of production cost or netrealisable value. When production is less than normal capacity,fixed charges specifically exclude the share corresponding tothe sub-activity. Inventories presenting similar characteristicsare valued under the same method. The methods used in theGroup are FIFO – First-In, First-Out – and the weighted averageunit cost. When production cost cannot be recovered,it is lowered to net realisation value under the conditionsexisting at the balance sheet date.Trade receivables and turnoverA trade receivable is recognised as a sale of goods upontransfer of the risks, rewards and control. In almost allcases, the incoterm of the transaction constitutes the mainindicator of recognition of a sale of goods. A trade receivableis recognised as a provision of service in the amount of thepercentage of completion of the service at the balance sheetdate. As the greater part of the provision of services is madeup of transport on sales, their recognition generally resultsfrom that of sale of the goods transported. For both sales ofgoods and provision of services, a receivable is recognisedonly if it is recoverable and if the amounts of the transactionand of the costs required for its completion can be valuedreliably. Sales of goods and provision of services are valuedat fair value of the transaction less trade and volume rebates,as well as discounts for early payment. Subsequent to theirinitial recognition, trade receivables are valued at amortisedcost. Impairments are recorded during the financial year inwhich they are identified. A receivable transferred to a bankinginstitution for financing purposes is derecognised only if thefactoring service contract also transfers to the factor all risksand rewards inherent to the receivable.Impairment of assetsAvailable-for-sale investmentsWhen there is an objective evidence of impairment of anavailable-for-sale investment, an impairment test must becarried out, in accordance with IAS 36 – Impairment of assets.The Group considers a significant or prolonged decline in fairvalue below cost as an objective indication of impairment.If the tested investment is considered as impaired, theimpairment recorded in the revaluation reserves is reclassifiedto profit or loss. The amount of the impairment recorded is thedifference between the acquisition cost of the investment andits fair value (share price) at closing.Investments consolidated using the equity methodWhen there is an objective evidence of impairment of aninvestment consolidated using the equity method, animpairment test must be carried out, in accordance withIAS 36 – Impairment of assets and IAS 28 – Investments inassociates. The recoverable amount of the asset is estimatedin order to compare it to its book value and, if need be, to enteran impairment for the surplus. The recoverable amount is thehighest of either the fair value less costs of sell or the valuein use. The value in use corresponds to the future estimateddiscounted cash flow value. When an impairment accountedfor in an earlier period ceases to exist, the book value ispartially or totally restored. The reversal of an impairment isrecorded immediately as profit.Accounts at 31 December 2011Annual Report 2011 75