LISI 2012 FINANCIAL REPORT
34
3
Consolidated financial statements
2
notes
2.1 GROUP ACTIVITY AND KEY HIGHLIGHTS OF
THE YEAR
The company LISI S.A. (hereinafter “the Company”), is a limited-
liability corporation in French law, listed on the Paris stock
exchange, whose head office is at the following address: "Le
Millenium, 18 rue Albert Camus, CS 70431, 90008 BELFORT
cedex".
The Group's consolidated accounts for the fiscal year ended
December 31, 2012 include the Company, its subsidiaries and
affiliates (which are together referred to as "the Group").
The LISI Group’s main business activity is the manufacturing of
multifunctional fasteners and assembly components for three
business sectors: aerospace, automotive, and medical.
The highlights of the financial year are as follows:
• On May 29, 2012, the Group sold 100% of its holdings in its
subsidiary KNIPPING UMFORMTECHNIK GmbH to Gris Invest
SAS for an amount of €2.8 million.
• The goodwill of the Creuzet Group has been updated for the
year 2012 (see Note 6.1.1 Goodwill).
2.2 ACCOUNTING RULES AND METHODS
The financial statements for year ending December 31, 2012
were approved by the Board of Directors on February 19, 2013
and will be submitted to the Combined General Meeting on
April 25, 2013.
2.2.1 Background to the preparation of the consolidated
financial statements for the 2012 financial year
In accordance with EU regulation 1606/2002 dated July 19,
2002, the LISI Group’s consolidated financial statements have
been prepared in line with IAS/IFRS international accounting
standards as adopted by the European Union on December 31,
2012.
2.2.1.1 Standards, amendments and interpretations adopted
by the EU and mandatory for reporting periods beginning on or
after January 1, 2012
- The amendment to IFRS 7 "Disclosures - Transfer of Financial
Assets": The application of this amendment has no material
impact on the Group's consolidated financial statements as at
December 31, 2012.
- The amendment to IAS 12 "Income Taxes - Deferred Tax:
Recovery of Underlying Assets": this amendment is not
applicable in the Group, therefore it has no impact on the
Group's consolidated financial statements for fiscal 2012.
2.2.1.2 Standards, amendments and interpretations not
mandatory for reporting periods beginning on or after
January 1, 2012 but that may be anticipated by the Group
- Revised IAS 19: the Group has opted for early application of
the revised IAS 19. The impact is detailed in Note 2.10 "Early
Implementation of the revised IAS 19"
The revision of IAS 19 has as its main effects:
• to impose immediate recognition as shareholders' equity of
non-recyclable actuarial gains and losses onpost-employment
benefits,
• to eliminate the recognition as income of the performance
of plan assets on the basis of an expected rate of return (by
imposing the same rate of return for investment grade bonds
as the one used for stating liabilities at historical cost),
• to eliminate the spreading of past service costs,
• to improve disclosures by refocusing on the characteristics of
plans and related risks.
The Group has not opted for the early implementation of the
following standards, amendments and interpretations as of
January 1, 2012:
- Amendment to IAS 1 "Presentation of other comprehensive
income"
- Amendment to IFRS 7 "Financial Instruments: Disclosures -
Offsetting Financial Assets and Financial Liabilities"
- IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint
Arrangements", IFRS 12 "Disclosure of Interests in Other
Entities", IAS 28 "Investments in Associates"
- IFRS 13 "Valuation at Fair Value"
- IAS 32 "Presentation - Offsetting Financial Assets and
Financial Liabilities"
2.2.2 Basis for the preparation of the financial statements
Financial statements are given in thousands of euros, except
where otherwise indicated.
They are prepared on the basis of historical costs, with the
exception of the following assets and liabilities which have
been evaluated at their fair value: financial derivatives, financial
instruments held for trading purposes or classified as held
for sale, liabilities from cash-settled share-based payment
transactions.
Non-current assets held for sale are evaluated at the lower of
their book value and the fair value less costs of disposal.
According to IFRS standards, certain accounting options involve
taking positions based on judgment of assumptions that have
