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ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
loss is recognised in the consolidated statement of com-
prehensive income by the amount by which the recover-
able amount exceeds the accounted amount. The recov-
erable 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 sep-
arately 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 general-
ly 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 Ebitda for at least 2 years are subject to
impairment tests.
Consolidation differences are distributed among the
group’s cash-flow generating units (CGUs), identified ac-
cording 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 ap-
ply cash flow forecasts based on financial budgets ap-
proved 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 sec-
tor’s reports. The discount rates used after 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 follow-
ing categories: financial assets at the fair value through
results, loans granted and accounts receivable, invest-
ments held until maturity and financial assets available
for sale. The investment is classified according to its
purpose. The Board of Directors decides on the classifi-
cation 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 as-
sets held for negotiation and those that are designated
at the fair value through results from the start. A finan-
cial asset is classified in this category if it is acquired for
the main purpose of being sold on the short term or if
designated as such by the Board of Directors. Deriva-
tives are also classified as held for negotiation, except
if they are classified for hedging. Assets in this category
are classified as current if they are held for negotiation
or are realisable within 12 months after the consolidat-
ed statement of financial position date.
b) Loans granted and accounts
Loans granted and other credits are non-derivative finan-
cial assets with fixed or determinable payments and that
are not listed on an active market. These assets originate
when the group supplies cash, goods or services direct-
ly to a debtor, without intending to negotiate the time
at which it will receive payment for the said cash goods
or services. They are included in current assets, except
when they mature in more than 12 months after the con-
solidated statement of financial position date, in which
case they are classified as non-current assets.
