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CONSOLIDATED FINANCIAL STATEMENTS
38
LISI 2015 FINANCIAL REPORT
2.2.1.3 IFRS 15 and IFRS 9 applicable as of January 1, 2018
The Group is currently measuring the impact of these
standards.
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 measured at their fair value: financial derivatives,
financial instruments held for trading purposes and classified
as held for sale and 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
an impact on the amounts of assets or liabilities, income or
expenses, particularly regarding the following elements:
■■
durations of depreciation of fixed assets (notes 2.2.7.3 and
2.2.8.4);
■■
evaluations retained for impairment tests (note 2.2.8.5);
■■
evaluation of pension provisions and obligations (notes 2.2.13
and 2.2.14);
■■
valuation of financial assets at fair market value (notes 2.2.6,
2.2.8.6, 2.2.11 and 2.2.12);
■■
valuation of share-based payments (note 2.2.14.2);
■■
recognition of deferred tax assets (note 2.2.18.5).
These judgments and assumptions take into account the
specific risks of the sectors concerned by LISI's activities, as
well as general risks related to the economic context. The
current period being characterized by greater volatility, the
visibility is limited. Consequently, the forecasts used as a basis
for such judgment and assumptions may differ from actual
future achievements.
Management continuously reviews its estimates and
assessments based upon past experience and on factors
considered reasonable that form the basis of its assessment for
the book values of assets and liabilities. The impact of changes
to accounting estimates is recognized during the period of
change only where it affects this period or during the period
of change and successive periods if these are also impacted by
the change.
The decisions made by the management regarding IFRS having
a significant impact on the financial statements and estimates
presenting a major risk of variation over subsequent periods
mainly concern provisions (notes 2.2.13 and 2.6.4), deferred
tax assets (note 2.6.7) and impairment tests on assets (notes
2.2.8.5 and 2.6.1.1). Calculations for staff retirement provision
and valuation tests are based on valuation assumptions, the
sensitivity of which can affect costs recognized as provisions in
the accounts. These assumptions are broken down by division
on the basis of information drawn from independent experts
(actuaries, etc.).
Assessment of the major sources of uncertainty
Although the Group's business sectors recorded different rates
of growth in recent years, this has not generated any major
uncertainties.
Identified sensitivities
The main sensitivities identified and tracked by management
concernthedataandassumptionsrelatedtotheimplementation
of the impairment tests. These assumptions are consolidated
through a collection process of forecast information frommajor
players in the sector (market assumptions) and actuaries (rate
assumptions).
Accounting treatment of the CVAE (Tax on Companies’
Added Value)
Following the release of the National Accounting Council
of January 14, 2010, the Group decided to qualify the CVAE
(contribution of the Added Value of Businesses) as income tax
that would fall within the scope of IAS 12. This decision is
based on an opinion of the IFRIC issued in 2006 stating that the
term 'taxable profit' implies a notion of net rather than gross
amount without it being necessarily identical to the accounting
result. Moreover, this choice ensures consistency with the
accounting treatment applied to similar taxes in other foreign
countries.
Treatment of the research tax credit
Revenues related to the research tax credit are classified in the
income statement under "Other income".
Treatment of the tax credit for competitiveness and
employment ("CICE")
The CICE has been presented in application of IFRS as a
deduction from the employment-related expenses for an
amount of €9.5 million.
2.2.3 Consolidation principles
A subsidiary is an entity controlled by its parent company.
Control exists when the Group is able to direct the financial