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Consolidated Financial Statements as of December 31, 2015
Notes to the Consolidated Financial Statements
Provisions and contingent liabilities
Note 9
Accounting policies
In accordance with IAS
37 –
Provisions, Contingent Liabilities and
Contingent liabilities, which are not recognized in the statement of
Contingent
Assets
, a provision is recorded when, at the period-end, the financial position, are defined as:
Group has a present obligation (legal or constructive) as a result of a
possible obligations that arise from past events and whose existence
●
past event, it is probable that an outflow of resources embodying
will be confirmed only by the occurrence or non-occurrence of one
economic benefits will be required to settle the obligation, and a
or more uncertain future events not wholly within the control of the
reliable estimate can be made of the amount of the obligation . The
Group; or
amount of the provision is estimated based on the nature of the
present obligations that arise from past events but are not
●
obligation and the most probable assumptions. Provisions are
recognized because (i) it is not probable that an outflow of resources
discounted when the effect of the time value of money is material.
embodying economic benefits will be required to settle the
obligation or (ii) the amount of the obligation cannot be measured
with sufficient reliability.
Changes in provisions
9.1
Reversals of
December 31, Translation
Discounting
surplus
December 31,
2014 adjustment Increases adjustment
provisions Utilizations
Other
2015
(in millions of euros)
Post-employment benefit
obligations (Note 10)
1,426
1
91
28
(196)
(91)
(1)
1,258
Claims and litigation
1,570 (226)
421
-
(312)
(232)
2
1,222
Tax reassessments
892 (128)
151
-
(126)
(56)
3
737
Disputes with current and
former employees
385
(67)
130
-
(118)
(68)
(1)
261
Legal disputes
292
(31)
140
-
(68)
(108)
0
224
Restructuring
140
1
84
-
(21)
(41)
6
169
Other
(1)
444
0
74
-
(49)
(63)
(42)
364
TOTAL PROVISIONS
3,581 (224)
669
28
(578)
(428)
(35)
3,014
Other provisions primarily concern technical risks associated mainly with the insurance business, store closure costs and onerous contracts.
(1)
Group companies are involved in a certain number of claims and legal
At December
31, 2015, the claims and legal proceedings in which the
proceedings in the normal course of business. They are also subject to Group was involved were covered by provisions totaling 1,222 million
tax audits that may result in reassessments. The main claims and legal
euros (December
31, 2014: 1,570
million euros). No details are
proceedings are described below. In each case, the risk is assessed by
provided because the Group considers that disclosure of the amount
Group management and their advisors.
set aside in each case could be seriously detrimental to its interests.
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2015 REGISTRATION DOCUMENT