Airbus 2015 Annual Report Download - page 202

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 20 l
Notes to the IFRSConsolidatedFinancialStatements
2.2 Group Structure
6. Acquisitions and Disposals
Business combinations are accounted for using the acquisition
method, as at the acquisition date, which is the date on which
control is transferred to the Group.
The determination of the fair value of the acquired assets and
the assumed liabilities which are the basis for the measurement
of goodwill requires significant estimates. Land, buildings and
equipment are usually independently appraised while marketable
securities are valued at market prices. If any intangible assets
are identified, depending on the type of intangible asset and the
complexity of determining its fair value, the Group either consults
with an independent external valuation expert or develops the
fair value internally, using appropriate valuation techniques
which are generally based on a forecast of the total expected
future net cash flows.
These evaluations are linked closely to the assumptions made
by management regarding the future performance of the assets
concerned and the discount rate applied.
Loss of control, loss of joint control, loss of significant
influence — Upon loss of control of a subsidiary, the assets and
liabilities and any components of the Group’s equity related to
the subsidiary are derecognised. Any gain or loss arising from
the loss of control is recognised within other income or other
expenses in the Consolidated Income Statement. If the Group
retains any interest in the previous subsidiary, such interest is
measured at fair value at the date the control is lost.
Assets and liabilities of a material subsidiary for which a loss of
control is highly probable are classified as assets and liabilities
held for sale when the Company has received sufficient evidence
that the loss of control will occur in the 12months after the
classification. These assets and liabilities are presented after
elimination of intercompany transactions.
When the loss of significant influence or the loss of joint control
of an investment accounted under the equity method is highly
probable and will occur in the coming 12months, this associate
or joint venture is classified as an asset held for sale.
Sale of investment in an associate or joint venture — Any
gain or loss arising from the disposal of investment accounted
for under the equity method is recognised within share of profit
from investments accounted for under the equity method.
6.1 Acquisitions
There were no material acquisitions in 2015 and 2014.
6.2 Disposals
On 14January 2015, AirbusGroup and Safran completed
the first phase of the integration process of Airbus Safran
Launchers Joint Venture (“ASL”) enabling the entity to become
operational. Coordination and programme management of
the civil activities of the launcher business as well as relevant
participations have been transferred to ASL during this first
phase. The assets and liabilities associated with the first phase
were classified as held for sale as at 31December 2014.
AirbusGroup received 50% of issued shares in ASL initially
recognised at € 56million as at-equity investment. The loss of
control in the business resulted in a capital gain of € 49million,
which is reported in Airbus Defence and Space Division in other
income.
During the second phase, Safran and AirbusGroup intend to
integrate within the joint venture all the remaining contracts,
assets and industrial resources, related to space launchers and
associated propulsion systems.
On 16June 2015, ASL, the French state and CNES, the French
space agency, have reached an agreement to transfer CNES’s
stake in Arianespace to ASL. On 12August 2015, ASL was
awarded the Ariane 6 development contract by the European
Space Agency.
The second phase will be initiated and implemented once all
legal and financial terms and conditions are finalised between
both partners. The joint venture will then be fully equipped for
all design, development, production and commercial activities
related to civil and military launchers and associated propulsion
systems.
On 20 August 2015, Airbus Defence and Space GmbH,
Rohde & Schwarz GmbH und Co. KG, Thales Electronic
SystemsGmbH and Northrop Grumman LitefGmbH sold their
shares in Elektroniksystem und LogistikGmbH (“ESG”) to
E-SicherheitsbeteiligungenGmbH. AirbusGroup recognised a
€ 59million gain in share of profit from investments accounted for
under the equity method, which is reported in Airbus Defence
and Space Division. The assets and liabilities of this company
were classified as held for sale as at 31December 2014.
On 1October 2015, Airbus sold its shares in its fully owned
subsidiary CimpaSAS to Sopra Steria Group. The gain on this
disposal which is recognised in other income for € 72million, is
reported in Airbus Division.
On 28February 2014, EADS North America, Inc., Herndon
(VA, USA) sold 100% of the assets and liabilities of its Test &
Services division to Astronics Corp., East Aurora (NY, USA), for
a total consideration of € 51million, which is reported in Airbus
Defence and Space Division.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015