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An impairment loss with regard to a financial asset
measured at amortized cost is calculated as the difference
between the carrying amount and the present value of
the expected future cash flows, discounted at the original
effective interest rate of the asset. Current receivables are
not discounted. Losses are recognized in the
income statement.
If an event leads to a reduction of the impairment, this
reduction is reversed through the income statement.
Financial assets available for sale
Impairments on financial assets available for sale are
recognized by reclassifying the accumulated loss in the fair
value reserve in equity to the income statement. The
amount of the cumulative loss transferred from equity to
the income statement is equal to the difference between
the acquisition price, after deduction of any repayment of
the principal, and the current fair value, less any impair-
ment loss that has already been included in the income
statement. Changes in provisions for impairments
attributable to the application of the effective interest rate
method are recognized in interest income.
If the fair value of a financial asset available for sale
increases in a subsequent period and the rise can be
linked objectively to an event that occurred after the
recognition of the impairment loss in the income state-
ment, the impairment loss is reversed. However, if the fair
value of an impaired equity instrument available for sale
recovers in a subsequent period, the recovered amount is
recognized in other comprehensive income.
ASSETS CLASSIFIED AS HELD FOR SALE
Non-current assets (or groups of assets and liabilities
being disposed of) that are expected to be recovered
mainly via a sales transaction and not through the
continuing use thereof are classified as held for sale.
Directly prior to this classification the assets (or the
components of a group of assets being disposed of) are
remeasured in accordance with the Group’s financial
accounting policies. Hereafter the assets (or a group of
assets to be disposed of) are measured on the basis of
their carrying amount or, if lower, fair value less cost to
sell. Non-current assets are no longer depreciated as soon
as they are classified as held for sale. Any impairment loss
on a disposal group is allocated in the first place against
goodwill and then, proportionally, against the remaining
assets and liabilities, except that no impairments are
allocated against inventories, financial assets, deferred tax
assets and employee benefit assets, which will continue to
be measured in accordance with the Group’s accounting
policies. Impairment losses on initial classification and
gains and losses on subsequent measurement are
recognized in the income statement.
EMPLOYEE BENEFITS
Short-term employee benefits
Short-term employment benefit obligations include
wages, salaries and social security contributions, holiday
pay, continued payment of wage in the event of illness,
bonuses and remuneration in kind. These are expensed
when the services in question are provided. Some of the
Group’s employees are eligible to a bonus, based on
personal performance and financial targets. The bonus
amount recognized in the income statement is based on
an estimation at the balance sheet date.
Post employment benefits
Post employment benefits include the pension plans.
The Group provides post-retirement remuneration for
some of its employees in the form of defined contribution
plans.
Defined contribution plans
A defined contribution plan is a post-employment benefit
plan under which the Group pays fixed contributions into a
separate entity and has no legal or constructive obligation
to pay further amounts. Obligations for contributions to
defined contribution plans are recognized as an employee
benefit expense in the income statement in the periods
during which related services are rendered by employees.
In Belgium employers are obliged to guarantee a minimum
return on defined contribution plans throughout the
employee’s career. To the extent that the legally guaran-
teed return is adequately covered by the insurance
company, the Group has not further payment obligation
towards the insurance company or the employee beyond
the pension contributions, recognized through profit and
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05 / FINANCIAL REPORT
KINEPOLIS GROUP
ANNUAL REPORT 2015