TMS » Topics » Effect of application of IFRS 5

This excerpt taken from the TMS 6-K filed Sep 23, 2005.

Effect of application of IFRS 5

As of January 1, 2005, Anagni plant assets and liabilities met the criteria of group of assets held for sale, therefore, in accordance with IFRS 5, they have to be presented separately in the consolidated balance sheet. The assets held for sale mainly include € 65 million of inventories, net, € 23 million of accounts receivable and € 7 million of other current assets. Related liabilities mainly include € 25 million of post employment benefits, € 27 million of accounts payable and € 111 million of intra-group liabilities.

- 94 -


Thomson Group

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
All amounts indicated in the tables are expressed in millions of euro, unless otherwise stated

30.7 Cash -flow statement as of December 31, 2004

    Cash flow for the year ended December 31, 2004  
    French GAAP   Effect of   IFRS  
        transition to      
        IFRS      
Cash flows from operating activities:              
               
      Cash generated from operations   562   29   591  
               
      Interest paid   (47)   -   (47)  
               
      Interest received   10   -   10  
      Dividend received   -   -   -  
               
      Income tax paid   (124)   -   (124)  
    401   29   430  
      Net cash generated from operating activities              
               
Cash flows from investing activities:              
      Acquisition of subsidiary, net of cash acquired   (664)   -   (664)  
      Proceeds from sale of investment in other   61   -   61  
      companies              
      Purchases of property, plant and equipment (PPE)   (309)   -   (309)  
      Proceeds from sale of PPE   49   -   49  
      Purchases of intangible assets   (39)   (29)   (68)  
      Net cash used in investing   (902)   (29)   (931)  
               
               
Cash flows from financing activities:              
      Proceeds from issuance of ordinary shares              
      Purchase of treasury shares   (58)   -   (58)  
      Proceeds from issuance of convertible bond   403   -   403  
      Proceeds from issuance of redeemable preference       -      
      shares              
      Proceeds from borrowings   274   -   274  
      Repayments of borrowings   (540)   -   (540)  
      Dividends paid to Company’s shareholders   (71)   -   (71)  
      Dividends paid to minority interests   (3)       (3)  
      Net cash used in financing activities   5   -   5  
               
               
Net (decrease)/increase in cash and bank   (496)   -   (496)  
overdrafts:              
               
Cash and bank overdrafts at beginning of period   2,383   -   2,383  
Exchange gains/(losses) on cash and bank overdrafts   19   -   19  
Cash and bank overdrafts at end of period   1,906   -   1,906  

- 95 -


Thomson Group

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
All amounts indicated in the tables are expressed in millions of euro, unless otherwise stated

The IFRS cash flow statement is affected by the following changes:

Net cash from operating activities:
- Previously under French GAAP, the net cash from operating activities was presented starting from the Operating Income. Under IFRS the reconciliation from IFRS net income to net cash from operating activities is presented in note 26.
   
Net cash from investing activities:
- The increase in purchase of intangible assets under IFRS is due to the capitalization of the development projects, which were expensed under French GAAP.
   
This excerpt taken from the TMS 6-K filed Aug 3, 2005.

Effect of application of IFRS 5

As of January 1, 2005, Anagni plant assets and liabilities met the criteria of group of assets held for sale, therefore, in accordance with IFRS 5, they have to be presented separately in the consolidated balance sheet. The assets held for sale mainly include € 65 million of inventories, net, € 23 million of accounts receivable and € 7 million of other current assets. Related liabilities mainly include € 25 million of post employment benefits, € 27 million of accounts payable and € 111 million of intra -group liabilities.

- 94 -


Thomson Group

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
All amounts indicated in the tables are expressed in millions of euro, unless otherwise stated

30.7 Cash -flow statement as of December 31, 2004

    Cash flow for the year ended December 31, 2004  
    French GAAP   Effect of   IFRS  
        transition to      
        IFRS      
Cash flows from operating activities:              
            591  
      Cash generated from operations   562   29      
            (47)  
      Interest paid   (47)   -      
            10  
      Interest received   10   -      
      Dividend received   -   -      
            (124)  
      Income tax paid   (124)   -      
    401   29   430  
      Net cash generated from operating activities              
               
Cash flows from investing activities:              
      Acquisition of subsidiary, net of cash acquired   (664)   -   (664)  
      Proceeds from sale of investment in other   61   -   61  
      companies              
      Purchases of property, plant and equipment (PPE)   (309)   -   (309)  
      Proceeds from sale of PPE   49   -   49  
      Purchases of intangible assets   (39)   (29)   (68)  
      Net cash used in investing   (902)   (29)   (931)  
               
               
Cash flows from financing activities:              
      Proceeds from issuance of ordinary shares              
      Purchase of treasury shares   (58)   -   (58)  
      Proceeds from issuance of convertible bond   403   -   403  
      Proceeds from issuance of redeemable preference       -      
      shares              
      Proceeds from borrowings   274   -   274  
      Repayments of borrowings   (540)   -   (540)  
      Dividends paid to Company’s shareholders   (71)   -   (71)  
      Dividends paid to minority interests   (3)       (3)  
      Net cash used in financing activities   5   -   5  
               
               
Net (decrease)/increase in cash and bank   (496)   -   (496)  
overdrafts:              
               
Cash and bank overdrafts at beginning of period   2,383   -   2,383  
Exchange gains/(losses) on cash and bank overdrafts   19   -   19  
Cash and bank overdrafts at end of period   1,906   -   1,906  

- 95 -


Thomson Group

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
All amounts indicated in the tables are expressed in millions of euro, unless otherwise stated

The IFRS cash flow statement is affected by the following changes:

Net cash from operating activities:
- Previously under French GAAP, the net cash from operating activities was presented starting from the Operating Income. Under IFRS the reconciliation from IFRS net income to net cash from operating activities is presented in note 26.
   
Net cash from investing activities:
- The increase in purchase of intangible assets increased under IFRS is due to the capitalization of the development projects, which were expensed under French GAAP.
   

EXCERPTS ON THIS PAGE:

6-K
Sep 23, 2005
6-K
Aug 3, 2005
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