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2
I
NOTES
2.1
I
GROUP ACTIVITY AND HIGHLIGHTS OF THE YEAR
The company LISI S.A. (hereinafter referred to as “the Company”) is
a
Société Anonyme
(public limited company) under French law, listed
on the Paris Stock Exchange, whose head office is at the following
address: “6 rue Juvénal Viellard, CS 70431 GRANDVILLARS, 90008
Belfort cedex”.
The consolidated financial statements of the Group for the financial
year ending December 31, 2017 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.
Highlights of the year
Integration of Termax
On October 31, 2017, the LISI Group acquired 51% of the shares of TERMAX
LLC. This company was acquired by LISI Holding North America, a wholly
owned subsidiary of the LISI Group.
Effective October 31, the transaction led the LISI Group to consolidate the
companies of the Termax Group starting November 1, 2017. The impacts
of this integration on the Group’s financial statements over the last two
months of the year are not significant.
Sale of Précimétal Fonderie de Précision
On February 2, 2017, the Group sold its Précimétal Fonderie de
Précision subsidiary.
2.2
I
ACCOUNTING PRINCIPLES AND POLICIES
The financial statements drawn up as at December 31, 2017 were
approved by the Board of Directors on February 14, 2018 and will be
submitted to the Combined General Meeting on April 24, 2018.
2.2.1
I
Background to the preparation of the consolidated
financial statements for the 2017 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, 2017.
2.2.1.1 Standards, amendments and interpretations adopted by
the EU and mandatory for reporting periods beginning on or
after January 1, 2017
■■
Amendments to IAS 12: this text clarifies the general application of
IAS 12 with respect to:
–
–
the consideration of taxable differences to justify the
recognition of deferred tax assets if the reversal of those
differences is representative of the future taxable profit to
which the deductible differences/deficits may be attributed;
and
–
–
the determination of the probable existence of future taxable
profits beyond the reversal of taxable differences for which
a deferred tax liability was recognized for the recognition of
additional deferred tax assets.
These amendments have no impact on the Group’s consolidated
financial statements as of December 31, 2017.
■■
Amendments to IAS 7: new information to be given to better
understand the changes in debt arising from financing activities
by distinguishing the changes corresponding to cash flows (related
to the cash flow tables) from the other changes (changes in scope,
currency effects, changes in fair value, etc.).
These amendments result in the addition of a note that shows the
changes for the period for financial debts that distinguishes changes
resulting from cash flows and “non-cash” effects (paragraph 2.5.6.1).
2.2.1.2 New standards and interpretation for later application
approved by the European Union
No standard, interpretation or amendment to existing standards was
applied in anticipation in the financial statements at December 31,
2017.
The standards and interpretations published and approved by the
European Union, but whose application is not yet mandatory, are the
following:
a) At the end of May 2014, the IASB published standard IFRS 15,
Revenue from contracts with customers. This standard concerns
the recognition and valuation of the revenue from ordinary
activities from contracts with customers. This standard will
replace standards IAS 18, Revenue from ordinary activities and
IAS 101, Construction contracts. This standard, not yet adopted by
the European Union, should come into force for the financial years
starting from January 1, 2018. This standard introduces a single
analysis grid regardless of the transactions (sale of goods, sale of
services, granting of licenses, etc.) with five successive stages:
–
–
identification of the contract or contracts;
–
–
identification of the seller’s various contractual obligations
(performance obligations);
–
–
determination of the price of the transaction;
–
–
allocation of the price of the transaction to the various
obligations identified;
–
–
recognition of the sales revenue.
The analysis of the Group’s main contracts was conducted in
accordance with IFRS 15 and shows that this standard will not have a
significant impact on the Group’s financial statements.
35
LISI 2017 FINANCIAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
3