Airbus 2015 Annual Report Download - page 279

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 97 l
Notestothe IFRSCompanyFinancialStatements
4.
Investments in Subsidiaries, Associated
Companies and Participations
Investments in subsidiaries and associated companies are stated
at cost, less impairment. Dividend income from the Company’s
subsidiaries and associated companies is recognised when the
right to receive payment is established.
Available-for-sale participations are stated at fair value with
changes in fair value recognised in other comprehensive income.
For the purpose of impairment testing all consolidated
subsidiaries are allocated to Cash Generating Units (“CGU”) in
a way they are monitored for internal management purposes.
At each balance sheet date, the Company reviews whether
there is an indication that a CGU to which its investments in
subsidiaries and associated companies belong to are impaired.
An indication for impairment of the investments in subsidiaries
and associated companies may include, respectively,
management’s downward adjustment of the strategic plan or
a significant decrease in the share price of a publicly listed
company. Further indications for impairment of its investments
may include other areas where observable data indicates that
there is a measurable decrease in the estimated future cash
flows. These determinations require significant judgement. In
making this judgement, management evaluates, among other
factors, the financial performance of and business outlook for
its investments, including factors such as industry and sector
performance, changes in technology and operational and
financing cash flow.
If any indication for impairment exists, the recoverable amount
of the investments is estimated in order to determine the extent,
if any, of the impairment loss. An investment is impaired if the
recoverable amount is lower than the carrying value. The
recoverable amount is defined as the higher of an investment’s
fair value less costs to sell and its value in use.
The determination of the investment’s value in use is based
on calculations using pre-tax cash flow projections based on
financial budgets approved by management covering a five-year
period. Cash flows beyond the five-year period are extrapolated
using estimated growth rates. The discounted cash flow method
is used to determine the recoverable amount of a CGU to which
its investments in subsidiaries and associated companies
belongs to. The discounted cash flow method is particularly
sensitive to the selected discount rates and estimates of future
cash flows by management. Key assumptions used to determine
the recoverable value of the CGU are the expected future labour
expenses, future interest rates, future exchange rates to convert
in euro the portion of future US dollar and pound sterling which
are not hedged and the estimated growth rate of terminal values.
If the recoverable amount of an investment is estimated to be less
than its carrying amount, the carrying amount of the investment
is reduced to its recoverable amount. Any impairment loss is
recognised immediately in the statement of income.
Impairment losses recognised in prior periods shall be reversed
only if there has been a change in the estimates or external market
information used to determine the investment’s recoverable
amount since the last impairment loss was recognised.
The recoverable amount shall not exceed the carrying amount
that would have been determined had no impairment loss been
recognised in prior years.
Change of Investments in Subsidiaries
On 26 June 2015, Airbus Group SE has made a capital
contribution of US$ 146million into AirbusGroup Proj B.V., a
100% subsidiary, in the frame of the industrial partnership with
OneWeb Ltd. for the design and manufacturing of microsatellites.
On 8December 2015, AirbusGroup SE entered into a partnership
agreement to establish a Corporate venture capital fund, dubbed
AirbusGroup Ventures, as well as a technology and business
innovation center in Silicon Valley. On 25November 2015, a
first investment of US$ 5million has been made into this fund.
On 15December 2015, AirbusGroup SE has made a capital
increase of € 19million into Aero Ré S.A., thereby acquiring
50.9% of the shares of the Company.
On 25July 2014, AirbusGroup SE acquired 100% shares in
Salzburg München Bank AG from Raiffeisenverband Salzburg
followed by a capital increase in December2014. The total
capital contribution amounted to € 100million.
On 13November 2014, AirbusGroup SE entered into a share
purchase agreement with its subsidiary Sogerma S.A.S. to sell
its 100% subsidiary Aerolia S.A.S. for a total consideration of
€ 700million. The transaction was closed on the same date,
whereby the Company recognised a € 480million capital gain
within income from investments.
Change of Investments in Associated Companies
On 9December 2014, AirbusGroup SE signed a share purchase
agreement with the State of Finland to sell its entire 26.8%
share in Patria Oyj to the Finnish defence, security and aviation
services provider for a total consideration of € 133million.
The transaction was closed on 11December 2014 and the
Company recognised a € 91million capital gain within income
from investments.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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