Annual Report 2011 - Analist.be

Accounts at 31 December 2011 - Accounting policiesTangible and intangible assetsAt every reporting date, the Group reviews the carrying valueof intangible and tangible assets with finite useful life in orderto assess whether there is any evidence of impairment of theseassets.If there is any evidence of impairment, the asset’s recoverableamount is estimated to compare with its carrying value. Therecoverable amount is the higher of the asset’s net sale priceor its value in use. The value in use is the present value ofestimated future cash flows from the continuous use of anasset. Where it is not possible to estimate the recoverableamount of an asset individually, the Group estimates therecoverable amount of the CGU to which the asset belongs.If the recoverable amount of the asset or of the CGU isestimated to be less than the carrying value, the carryingvalue of the asset or of the CGU is lowered to its recoverableamount. This impairment is immediately recognised toexpenses.When an impairment recorded during past financial yearsis no longer justified, the impairment on this asset or CGUis reversed in order to bring the asset or GGU back to avalue corresponding to the new valuation of its recoverableamount. However, the carrying value of an asset or CGU maynot exceed, following reversal of an impairment, the carryingvalue it would have had if no impairment had been recognisedfor the asset or CGU in previous years. The reversal of animpairment is recognised immediately as income.Trade receivablesWhen the occurrence of a credit event makes the carryingamount of a trade receivable partially or fully irrecoverable, it isindividually written down to its recoverable value by means ofa write-down in accordance with the conditions existing at thereporting date.Other financial assetsFor financial assets accounted for at amortised cost, theamount of the impairment is equal to the difference betweenthe carrying value and the present value of the estimatedfuture cash flows at the financial asset’s original effectiveinterest rate.TaxesIncome taxes of the financial year include both current anddeferred taxes. They are recorded in the income statementunless they relate to items directly recorded in shareholders’equity, in which case they also are recorded in the accountsin shareholders’ equity.Current taxes are the taxes to be paid on the taxable profit forthe financial year and are calculated in accordance with thetax rates in effect or that will be in effect on the last day of thefinancial year, plus any adjustments relating to prior years.The following tax differences are disregarded:non-tax-deductible goodwill and initial valuations of assetsand liabilities not affecting the book and taxable profit.Deferred taxes are calculated according to the manner inwhich the related assets and liabilities are expected to berealised or settled, based on the tax rates in effect or that willbe in effect on the last day of the financial year.Additionally, deferred tax liabilities related to investmentsin subsidiaries are not recorded when the Group is able tocontrol the date on which the temporary difference will reverseand when the Group does not expect the temporary differenceto reverse within a foreseeable future.Deferred tax assets are recorded if the taxable profits are likelyto materialise in such a manner as to allow them to be offsetagainst tax losses and tax credits.Treasury sharesWhen treasury shares are bought (or sold), the amountpaid (or received) is recorded as a decrease (or increase) inshareholders’ equity. Movements in these shares are shown inthe consolidated statement of changes in shareholders’ equity.No profits or losses on these movements are recorded in theincome statement.Appropriation of profitDividends paid by GBL to its shareholders are included asa reduction of shareholders’ equity for their gross amount,i.e. before withholding tax. The financial statements areestablished before appropriation of profit.Profit sharing plansGBL and Imerys stock optionsGBL and Imerys stock options granted prior to7 November 2002 have not been recorded in the consolidatedfinancial statements in accordance with the transitionalprovisions of IFRS 2 – Share-based payments.Profit sharing plans granted as from 7 November 2002 areaccounted for in accordance with IFRS 2. In accordancewith this standard, the fair value of the options on the date ofallocation is recorded in the income statement for the periodof acquisition of the rights (“vesting period”). The options arevalued by means of a valuation model generally authorisedbased on the market conditions prevailing at the time of theirallocation.Pargesa stock optionsThe Pargesa shares that cover the options issued are heldby GBL and are accounted for under the heading “Tradingassets”. The options are recorded on the liabilities in thebalance sheet. Changes in the fair value of options and sharesare recorded in the income statement.Deferred taxes are calculated in accordance with the variablecarry-over method, which is applied to the temporarydifferences between the book values and tax basis of theassets and liabilities recorded in the balance sheet.76 Annual Report 2011