Airbus 2015 Annual Report Download - page 274

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 92 l
Notestothe IFRSCompanyFinancialStatements
Furthermore we provide a reconciliation of the Profit for the period from Dutch GAAP into EU-IFRS in the Company financial
statements for 2014:
(In € million) 2014
Previous GAAP 2,343
Income from investments according to Dutch GAAP (2,412)
Income from investments according to EU-IFRS 758
Impairment of intercompany financial assets according to EU-IFRS (43)
Other valuation differences (23)
EU-IFRS 623
For purposes of an impairment test as of 1 January 2014,
management assessed the overall recoverability of its
investments and intercompany loans following the principles of
IFRS. The impairment test according to IFRS was performed by
using the discounted cash flow method (discount rate: pre-tax
weighted average cost of capital (WACC) of 8.7%) considering
assumptions of the operative planning. Its relevant components
are the country specific inflation and interest rates as well as an
increase of future labour expenses at a yearly average rate of 2%.
For further details regarding the methods applied for impairment
testing see also Note7 “Investments in subsidiaries, associates
and participations” of the Company Financial Statements. As a
result of the test an impairment of € 1,230million was recorded in
the opening balance sheet as of 1 January 2014. The impairment
consists of € 780million related to investments and € 450million
in connection with intercompany loans. As at year-end 2014,
intercompany loans were subject to an additional impairment
in the amount of € 43million mainly resulting from FX impacts.
Basis of preparation — The Company’s Financial Statements
are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International
Accounting Standards Board (“IASB”) as endorsed by the
European Union (“EU”) and with Part9 of Book2 of the Dutch
Civil Code. When applying IFRS in the Company Financial
Statements, Airbus Group SE applied the principles of
IFRS1 “First-time adoption of international financial reporting
standards”. According to IFRS1 a company applying for first
time IFRS1 shall develop accounting policies based on the
standards and related interpretations which are effective at the
reporting date of its first annual EU-IFRS Financial Statements
(31 December2015). IFRS1 also requires that those policies be
applied as of the date of transition to EU-IFRS (1 January2014)
and throughout all periods presented in the first EU-IFRS
Financial Statements.
In the Company Financial Statements of AirbusGroup SE,
unless otherwise disclosed, the same accounting principles
have been applied as set out in the Notes to the Consolidated
Financial Statements, except for the valuation of the investments
as presented under investments in subsidiaries and associates
in the Company Financial Statements. These policies have been
consistently applied to all years presented. In adopting IFRS
for the first time, the Company has not exercised the right of
applying optional exemptions which are granted to first-time
IFRS adopters in the conversion from Dutch GAAP to EU-IFRS.
In the Company Financial Statements, the investments in
subsidiaries and associates are recorded at acquisition
cost less impairments, whereas in prior years, investments
in Group companies were stated at net asset value. As a
consequence, the determination of the results in the Company
Financial Statements changed compared to previous years.
In the Company Statement of Income, dividend received from
investments is recorded as dividend income.
Due to this application, the Company equity and net result
are not equal to the consolidated equity and net result. A
reconciliation of the total shareholders’ equity and profit for
the period is presented in Note 11 “Total equity” to the Company
Financial Statements.
The Company Financial Statements have been prepared on a
historical cost basis, unless otherwise indicated.
Regarding the application of new, revised or amended IFRS
standards issued but not yet applied please refer to Note2
“Significant accounting policies” of the Group’s Consolidated
Financial Statements. Further information about Share-based
payments and Employee Stock Ownership Plans (ESOP) is
presented in Note30 and information about Remuneration is
presented in Note31 of the Consolidated Financial Statements.
The information with regard to Capital Management is disclosed
in Note33, further information about Litigation and claims refers
to Note36 and Events after the reporting date are disclosed
in Note38 of the Group’s Consolidated Financial Statements.
Unless reference is made to the accounting policies described
in the Consolidated Financial Statements, the main accounting
policies applied in the preparation of these Company Financial
Statements are described in each accounting area. These
accounting policies have been consistently applied to all
financial years presented, unless otherwise stated.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015