APC 2014 Annual Report Download - page 192

5CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER31,2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies Note1
1.1 – Accounting standards
IFRSissued by the International Accounting Standards board
(IASB).
The consolidated financial statements have been prepared in The Group is currently assessing the potential impact on the
compliance with the international accounting standards (IFRS) as Group’s consolidated financial statements of the standards not yet
adopted by the European Union as of December31, 2014. applicable. At this stage of analysis, the Group does not expect the
Thesame accounting methods were used as for the consolidated impact on its consolidated financial statements to be material,
financial statements for the year ended December31, 2013. except for IFRS9 due to uncertainties surrounding the adoption
The following standards and interpretations that were applicable process in Europe.
during the period did not have a material impact on the
1.2– Discontinued operations
consolidated financial statements as of December31, 2014:
Amendment to IAS32: Offsetting Financial Assets and Financial
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Liabilities; On February5, 2014, Schneider Electric announced that it has
signed an agreement for the sale of the Invensys Appliance
Amendment to IAS36: Recoverable Amount Disclosures for
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division, because this unit is not a core business to Schneider
Non-financial assets;
Electric. The consideration for the transaction is GBP150million
Amendment to IAS39: Novation of Derivatives and Continuation
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and the agreement was completed on June18, 2014. The
of Hedge Accounting; Invensys Appliance division is reported as discontinued operations
IAS28 revised – Investments in associates and joint-ventures;
l
in the Group consolidated financial statements for the full year
IFRS10 – Consolidated Financial Statements;
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2014.
IFRS11 – Joint Arrangements;
l
On October1, 2014 the Group has obtained all required regulatory
IFRS12 – Disclosure of Interests in Other entities;
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approvals and subsequently finalized the sale of Custom Sensors &
Technologies (CST) to The Carlyle Group (NASDAQ:CG), and PAI
Transition Guidance (Amendments to IFRS10, IFRS11 and
l
partners SAS, based on an enterprise value of USD900m
IFRS12). (approximately EUR650m). As part of the transaction, the Group
Implementation of IFRS10 and IFRS11 standards led to some has reinvested approximately USD100million alongside Carlyle,
changes in consolidation method with no significant effect on PAI and CST management to own a shareholding of 30% of CST.
consolidated financial statements. CST was reported in the Industry business of Schneider Electric.
The Group did not apply the following standards and The CST activity was reclassified as discontinued operations in
interpretations that are mandatory at some point subsequent to Group financial statements on full year 2014 (for EUR24million net
December31, 2014: income) and on full year 2013 (for EUR443million of revenues,
EUR83million of profit before tax and EUR22million of income tax
standards adopted by the European Union:
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expense thus a net income of EUR61millions).
IFRIC21 – Levies,
–
1.3– Basis of presentation
Amendments to IAS19 - Defined Benefit plans: Employees
–
Contributions,
Annual Improvements to IFRSs 2010-2012 Cycle (December
–
The financial statements have been prepared on a historical cost
2013), basis, with the exception of derivative instruments and available –
Annual Improvements to IFRSs 2011-2013 Cycle (December
–
for-sale financial assets, which are measured at fair value. Financial
2013);
liabilities are measured using the amortized cost model. The book
standards not yet adopted by the European Union:
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value of hedged assets and liabilities, under fair-value hedge,
IFRS9 – Financial instruments,
–
corresponds to their fair value, for the part corresponding to the
IFRS14 – Regulatory Deferral Accounts,
–
hedged risk.
IFRS15 – Revenue from Contracts with Customers,
–
1.4– Use of estimates and assumptions
Amendments to IAS16 and IAS38: Clarification of
–
Acceptable Methods of Depreciation and Amortization,
Amendments to IFRS11- Accounting for Acquisitions in
–
The preparation of financial statements requires Group and
Joint Operations,
subsidiary management to make estimates and assumptions that
Amendments to IFRS10 and IAS28 – Sale or Contribution
–
are reflected in the amounts of assets and liabilities reported in the
of Assets between an Investor and its Associate or Joint
consolidated balance sheet, the revenues and expenses in the
Venture,
statement of income and the obligations created during the
reporting period. Actual results may differ.
Annual Improvements to IFRSs 2012-2014 Cycle
–
(September 2014),
These assumptions mainly concern:
Amendments to IAS1 – Disclosure initiative,
–
the measurement of the recoverable amount of goodwill,
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Amendments to IFRS10, IFRS12 and IAS28 – Investment
–
property, plant and equipment and intangible assets (note1.11)
Entities: Applying the Consolidation exception.
and the measurement of the goodwill impairment (note8);
There are no differences in practice between the standards applied
by Schneider Electric as of December31, 2014 and the
190 2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC