NOTE 10 Interests in associates and joint ventures
At December 31, 2017, 2016 and 2015, the interests in associates and joint ventures included the activities of Orange as an operator in various African and Middle Eastern countries, including in particular Tunisia and Mauritius.
|
(in millions of euros) |
2017 | 2016 | 2015 |
|
Interests in associates in the opening balance |
130 | 162 | 603 |
|
Dividends |
- |
- |
(17) |
|
Share of profits (losses) |
6 | 20 | 26 |
|
Impairment |
- |
(66) | (64) |
|
Change in components of other comprehensive income |
(9) | (0) | (2) |
|
Change of consolidation scope |
(3) | (2) | (407) |
|
o/w acquisitions of shares |
- |
1 | 2 |
|
o/w takeovers (1) |
- |
- |
(409) |
|
o/w disposals of investments |
(3) | (3) |
- |
|
Translation adjustment |
(2) | 3 | 3 |
|
Reclassifications and other items |
(45) | 13 | 20 |
|
Classification as held for sale |
- |
- |
0 |
|
Interests in associates in the closing balance |
77 | 130 | 162 |
|
(1) Including Médi Telecom for (342) million euros (see Note 3) and Clouwatt for (66) million euros in 2015. |
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Changes in other comprehensive income of associates and joint ventures (excluding "assets held-for-sale") are presented below:
|
(in millions of euros) |
2017 | 2016 | 2015 |
|
Profit (loss) recognized in other comprehensive income during the period |
(9) |
- |
(2) |
|
Reclassification to net income for the period |
- |
- |
- |
|
Other comprehensive income of associates and joint venture - continuing operations |
(9) |
- |
(2) |
The unrecognized contractual commitments entered into by the Group relating to the interests in associates and joint ventures are described in Note 14.
The operations performed between the Group and the interests in associates and joint ventures are reflected as follow in Orange’s consolidated statement of financial position and income statement:
|
(in millions of euros) |
December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
|
Assets |
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|
Non-current financial assets |
2 |
- |
- |
|
Trade receivables |
45 |
55 | 79 |
|
Current financial assets (1) |
(2) | (1) | 237 |
|
Other current assets |
0 |
- |
13 |
|
Liabilities |
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|
Current liabilities (2) |
4 | 7 | 226 |
|
Trade payables |
10 |
15 | 14 |
|
Other current liabilities |
1 |
1 | 1 |
|
Deferred income |
45 |
45 | 2 |
|
Income statement |
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|
Revenues |
15 |
19 | 41 |
|
Other operating income |
18 |
35 | 99 |
|
External purchases and other operating expenses |
(57) |
(67) | (87) |
|
Finance cost, net |
0 |
1 | 0 |
|
(1) Disposal of Telkom Kenya in 2016: extinction of the current-account with Orange East Africa. |
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|
(2) Disposal of EE in 2016: extinction of the current-account with Orange East Africa. |
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The carrying amount accounted for under the equity method corresponds to the initial acquisition cost increased to recognize the share of the profit or loss in the period. If an associate incurs losses and the carrying amount of the investment is reduced to zero, the Group ceases to recognize the additional share of losses since it has no commitment beyond its investment. An impairment test is performed at least annually and when there is objective evidence of impairment, for instance a decrease in the quoted price when the investee is listed, significant financial difficulty of the entity, observable data indicating that there is a measurable decrease in the estimated future cash flows, or information about significant changes having an adverse effect on the entity. An impairment loss is recorded when the recoverable amount is lower than the carrying amount, the recoverable amount being the higher of the value in use and the fair value less costs to sell. The unit of account is the whole investment. Any impairment is recognized as “Share of profits (losses) of associates and joint ventures”. Impairment losses shall be reversed once the recoverable amount exceeds the carrying amount. |