FINANCIAL AND ACCOUNTING INFORMATION policies which have significant effect on the financial plans to adopt the new standard on the required statements are described in the following notes: effective date. •Business combinations (notes 3.5 and 4); The Group does not expect a significant impact Impairment of intangible assets and goodwil l on its balance sheet or equity on applying the • (notes 3.5 and 12.1); classification and measurement requirements of IFRS 9. •Employee benefits (notes 3.11 and 21); With regards to hedge accounting, the Group •Provisions and contingent liabilities (notes 3.13, 20, believes that all existing hedge relationships that and 28); are currently designated in effective hedging •Supplier rebates (see note 3.15 and 13.3); relationships will still qualify for hedge accounting Recognition of deferred tax assets (notes 3.18 under IFRS 9. As IFRS 9 does not change the • and 11); general principles of how an entity accounts for effective hedges, the Group does not expect a •Measurement of share-based payments (notes 3.12 significant impact as a result of applying IFRS 9. and 18). I n relation to the new impairment model of trade 3.2.1 Changes in accounting policies – amended receivables induced by IFRS 9, the Group expects standards to apply the simpl ified approach and record Effective as of January 1, 2017, the fol lowing new expected loss on al l trade receivables resulting amendments previously endorsed by the European in a higher loss allowance and a negative impact Union are applicable to Rexel. These changes had no on equity. Currently, the Group does not provide material effect on the Group’s financial statements: for non-due and less than 30 days past-due trade receivables. The Group has performed a detailed •Disclosure Initiative (Amendments to IAS 7 assessment to determine the magnitude of such Statement of cash flows), issued in January 2016 impairment modelwhich has no significant requires additional disclosures that enable users impact on its financial situation and operating of financial statements to evaluate changes in performance. liabilities arising from financing activities, including both changes arising from cash flows and non- • IFRS 15 “Revenue from Contracts with Customers”: cash changes (see note 22.2). Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which •Amendments to IAS 12 “Income Taxes” issued on an entity expects to be entitled in exchange for January 19, 2016: the amendments, “Recognition transferring goods or services to a customer. of Deferred Tax Assets for Unrealized Losses”, The new revenue standard wil l supersede IAS 11 clarify how to account for deferred tax assets “Construction contracts” and IAS 18 “Revenues” related to debt instruments measured at fair value on revenue recognition. The new standard wil l and the requirements on recognition of deferred come into effect as of January 1, 2018 with early tax assets for unrealized losses. application permitted. The Group has decided not 3.2.2 New and amended accounting standards and to early adopt IFRS 15. The Group is involved in the interpretations endorsed by the European Union distribution of electrical products to professional with effect in future periods customers and currently recognizes sales when the significant risks and rewards attached to the The following standards issued by IASB have been goods are passed on to the customers which endorsed by the European Union but are not yet usual ly occurs with the delivery or shipment of effective: the product. As sales of electrical equipment are •IFRS 9 “Financial Instruments” that supersedes general ly expected to be the only performance IAS 39 “Financial Instruments”: Recognition and obligation identified under IFRS 15, revenue will be Measurement, addresses both classification and recognized at a point in time when control of the measurement, impairment and hedge accounting. goods is transferred to the customer, general ly This new standard is effective as of January 1, on delivery or shipment of the products. In 2017, 2018 with early application permitted. Except for the Group has conducted an assessment of the hedge accounting, retrospective application is impacts of adopting IFRS 15 focused on the required. For hedge accounting, the requirements distinction of agent and principal with respect are general ly applied prospectively. The Group to its “direct sales” transactions. Direct sales are REXEL 2017 – REGISTRATION DOCUMENT 220