Vilmorin & Cie - Annual report 2017-2018

5 ANNUAL REPORT Vilmorin & Cie 159 2017-2018 23.2 - Application to Vilmorin & Cie Vilmorin & Cie has adopted the following rules to classify the main aggregate amounts of the balance sheet: Assets and liabilities that form part of the working capital needs of a normal business operating cycle are classified: - as “current” if the realization of the assets or the liquidation of the liabilities is expected to occur within one year following the closing date or if they are held for the purposes of trading, - as “non current” in all other cases. Fixed assets are classified as “non-current.” Provisions that are part of the normal operating cycle are classified as “current.” Provisions for employee benefits are classified as “non-current” bearing in mind the long-term horizon of such commitments. Financial debts are classified as “current” and “non-current” depending on whether their due dates fall in less than one year or more than one year after the closing date. Deferred taxes are all presented as “non-current” assets or liabilities. 24- Revenue from ordinary activities (IAS 18) 24.1 - General principle Revenue from ordinary activities comprises the sale of products, goods and services produced as part of Vilmorin & Cie’s main business activities, and also income from royalties and operating licenses. 24.2 - Application to Vilmorin & Cie Income is recorded in the sales when the company has transferred the important risks and advantages inherent in the property of the goods to the purchaser. The transfer date generally corresponds: For sold goods and products to the date they are made available to the customers. For services, sales depend on the extent to which the service has been rendered on closing date, and if its income can be considered to be reliable. For royalties, income is recorded in accordance with the provisions of the contract which generally stipulate calculation based on sales or quantities sold by the licensor. These royalties generally correspond to the remuneration of licenses for proprietary plant varieties or parental lines. Revenue from ordinary operations includes: sales of products, sales of services, royalties received from commercial activities. From this revenue a certain number of items are deducted: payments on account, discount for early pick-up, returns of goods and products, end of year discount and other retrospective discount of deferred prices to distributors. 25- Earnings per share The basic earnings per share are calculated on the basis of the weighted average number of shares in circulation over the fiscal year. The average number of shares in circulation is calculated on the basis of the different valuations of the share capital, corrected, where appropriate, for Vilmorin & Cie’s treasury shares. The diluted earnings per share are calculated by dividing Vilmorin & Cie’s share of the income by the number of ordinary shares in circulation to which are added all the potentially dilutive ordinary shares. Note 2: Events occurring during the fiscal year Main operations occurring during the fiscal year The main operations occurring during the course of the fiscal year were as follows: Creation of two joint ventures: Prime Seed Co Zimbabwe and Prime Seed Co Botswana In 2017, Vilmorin & Cie set up a sustainable partnership with its African partner Seed Co Zimbabwe, creating two joint ventures named Prime Seed Co Zimbabwe and Prime Seed Co Botswana, in order to develop its distribution markets for vegetable seeds in Africa. Vilmorin & Cie holds 49% of the capital stock of these two new structures. 5.1. Consolidated Financial Statements Financial INFORMATION