Carrefour - 2017 Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements 2017 REGISTRATION DOCUMENT | CARREFOUR 5. 228 Changes in ownership interest not resulting in a change of control Any change in the Group’s ownership interest in a subsidiary after the business combination that does not result in control being acquired or lost is qualified as a transaction with owners in their capacity as owners and recorded directly in equity in accordance with IFRS 10 – Consolidated Financial Statements. It is shown in cash flows from financing activities in the statement of cash flows. Translation of the financial statements of foreign operations The Consolidated Financial Statements are presented in euros. An entity’s functional currency is the currency of the primary economic environment in which the entity operates. The functional currency of Group entities is the currency of their home country. The financial statements of entities whose functional currency is not the euro and is not the currency of a hyperinflationary economy are translated into euros as follows: assets and liabilities are translated at the period-end closing rate; ● income and expenses are translated at the weighted average ● exchange rate for the period; all resulting exchange differences are recognised in “Other ● comprehensive income” and are taken into account in the calculation of any gain or loss realised on the subsequent disposal of the foreign operation; items in the statement of cash flows are translated at the ● average rate for the period unless the rate on the transaction date is materially different. No Group companies operated in a hyperinflationary economy in either 2017 or 2016. Translation of foreign currency transactions Transactions by Group entities in a currency other than their functional currency are initially translated at the exchange rate on the transaction date. At each period-end, monetary assets and liabilities denominated in foreign currency are translated at the period-end closing rate and the resulting exchange gain or loss is recorded in the income statement. Intra-group loans to certain foreign operations are treated as part of the net investment in that operation if settlement of the loan is neither planned nor likely to occur. The gain or loss arising from translation of the loan at each successive period-end is recorded directly in “Other comprehensive income” in accordance with IAS 21 – The Effects of Changes in Foreign Exchange Rates. Non-current assets and disposal groups held for sale and discontinued operations If the carrying amount of a non-current asset (or disposal group) will be recovered principally through a sale transaction rather than through continuing use, it is presented separately in the consolidated statement of financial position under “Assets held for sale” in accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations. Liabilities related to non-current assets held for sale are also reported on a separate line of the consolidated statement of financial position (under “Liabilities related to assets held for sale”). Following their classification as held for sale, the assets concerned are measured at the lower of their carrying amount and fair value less costs to sell and they cease to be depreciated or amortised. A discontinued operation is a component of an entity that has been either disposed of or classified as held for sale, and: represents a separate major line of business or geographical area ● of operations; and is part of a single coordinated plan to dispose of a separate ● major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to resale. ● It is classified as a discontinued operation at the time of sale or earlier if its assets and liabilities meet the criteria for classification as “held for sale”. When a component of an entity is classified as a discontinued operation, comparative income statement and cash flow information is restated as if the entity had met the criteria for classification as a discontinued operation on the first day of the comparative period. In addition, all the assets and liabilities of the discontinued operation are presented on separate lines on each side of the statement of financial position, for the amounts at which they would be reported at the time of sale after eliminating intra-group items.