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CONSOLIDATED FINANCIAL STATEMENTS
impairment whenever there are events or
alterations in the circumstances causing their
accounting value not to be recoverable. An
impairment loss is recognised in the consolidated
statement of comprehensive income by the
amount by which the recoverable amount exceeds
the accounted amount. The recoverable amount
is the highest amount between an asset’s fair
value minus the costs necessary for its sale and
its utilisation value. To perform impairment tests,
assets are grouped at the lowest level at which it
may be able to separately identify cash flows (units
generating cash flows).
A cash-generating unit (CGU) is the smallest
group of assets which includes the asset and
that generates cash flows from continued use
and which is generally independent from the
cash input from other assets or asset groups.
In the case of tangible assets, each shop was
identified as a cash-generating unit. Shops with
negative operating income for at least 2 years are
considered with impairment.
Consolidation differences are distributed among
the group’s cash-flow generating units (CGUs),
identified according to the country of operation
and the business segment.
The recoverable value of a CGU is determined
based on calculating the utilisation value. Those
calculations apply cash flow forecasts based on
financial budgets approved by the managers and
cover a 5-year period.
The Board of Directors determines the budgeted
gross margin based on past performance and on its
market growth expectations. The average weighted
growth rate used is consistent with provisions
included in the sector’s reports. The discount rates
used are prior to taxes and reflect specific risks
related with the assets from a CGU.
2.8. Financial assets
2.8.1. Classification
The group classifies its financial assets under the
following categories: financial assets at the fair
value through results, loans granted and accounts
receivable, investments held until maturity and
financial assets available for sale. The investment
is classified according to its purpose. The Board
of Directors decides on the classification when the
investments are initially recorded and re-assesses
that classification at each report date.
a) Financial assets at the fair value through
results
This category is subdivided into two parts: financial
assets held for negotiation and those that are
designated at the fair value through results from the
start. A financial asset is classified in this category
if it is acquired for the main purpose of being sold