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CONSOLIDATED FINANCIAL STATEMENTS
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LISI 2015 FINANCIAL REPORT
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to increase the activity of the stock on the market by
an Investment Services Provider via a liquidity contract
in accordance with the AFEI professional code of ethics
recognized by the AMF (the French stock markets authority);
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to grant stock options or free shares to employees and
corporate officers of the company and/or its Group;
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to retain and use shares as consideration or payment for
potential acquisitions;
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to cancel shares purchased, subject to the approval of the
Extraordinary General Meeting to be called at a later date.
Repurchased shares are classified as treasury shares and
deducted from shareholders’ equity.
2.2.12.2 Remunerations in shares (stocks options and
conditional award of so-called performance shares)
Refer to note 2.2.14 "Personnel benefits".
2.2.13 Provisions
A provision is recognized on the balance sheet if the Group has
a current, legal commitment or an implicit one arising from a
past event and for which it is probable that there will need to
be an outflow of resources that represent economic advantages
in order to eliminate the commitment. They are measured at
the estimated payment amount. If the effect of capitalizing
provisions is not significant, capitalization is not carried out.
2.2.13.1 Non-current provisions
Non-current provisions are provisions not directly related to
the operating cycle, whose due date is generally within more
than one year. They also comprise provisions for environmental
risks and provisions for retirement.
2.2.13.2 Current provisions
Current provisions cover the provisions directly related to the
operating cycle of each division, regardless of their estimated
due dates. Provisions for legal disputes concernmainly disputes
with customers, subcontractors, and suppliers. Provisions for
other current risks are mainly comprised of provisions for late
penalties, provisions for layoffs, and other operating risks.
2.2.14 Personnel benefits
2.2.14.1 Commitments to the personnel
In accordance with the laws and practices of each country in
which the Group operates, it offers its employees and former
employees, subject to certain conditions of service, the
payment of pensions or compensation on retirement. Such
benefits can be paid as part of defined contributions plans or
defined benefits plans.
Contributions in defined contributions plans are recognized as
expenses for the period in which they are incurred.
In respect of defined benefits plans, the Group’s commitments
to its staff are determined by independent actuaries or in house
using the Projected Unit Credit Method in accordance with IAS
19. This method takes into account in particular the probability
of keeping staff within the Group until retirement age, future
remuneration developments and a discount rate.
Such plans can be financed by investments in various
instruments, such as insurance policies, shares or bonds, to the
exclusion of debt instruments or shareholders’ equity issued by
the Group.
The requirements of IFRIC 14 do not fall within the scope of
adjustments to be applied by the Group.
In accordance with the revised IAS 19, actuarial gains and losses
have been recognized as “Other comprehensive income” since
January 1, 2012.
The excess or shortfall of the fair value of assets over the
present value of bonds is recognized as assets or liabilities on
the balance sheet. However, excess assets are only recognized
on the balance sheet if they represent a future economic
advantage for the Group.
The LISI Group has no plan opened relating to defined-
contribution plans.
2.2.14.2 Share-based payments
The Group has implemented plans for the share-purchase
options and a plan for awarding shares as a bonus conditional
on performance, for certain employees and directors, whose
objective is to create additional incentive to improve the
performance of the Group. As part of this scheme, certain
employees and managers of foreign subsidiaries will benefit
fromthesesameadvantages,butwillreceivetheirremuneration
in the form of a bonus payment.
The award of share purchase options and the award of shares
based on performance do represent a benefit available
to such associates, and thus constitute a supplement to
their remuneration. The options granted are recognized as
personnel expenses based on the fair value of the shares or
equity derivatives assigned, on the date of implementation of
these plans throughout the vesting period of these options.
In the case of plans for share-purchase options and bonus
shares based on performance, these benefits correspond to the
fair market value of the instruments awarded, and are valued
using a binomial model.
As regards bonus commitments, these are recorded as social
liabilities at their fair value at year-end.