Casino, Guichard-Perrachon

French Tax Legislation Introduces Lack Of Comparability, an emerging issue under IFRS

This report reviews how a small sample of companies treat new taxes introduced by French legislation that replace the previous business tax.

Casino, Guichard-Perrachon SA Period End 31 December 2009

Casino, Guichard-Perrachon SA Annual Report 2009
Recognition of gain on dividend in specie increases profit by 20.2%
French retailer Casino, Guichard-Perrachon distributes shares in a subsidiary without losing control and recognises a €139 million gain in the income statement that increases pre-tax profit by 20.2%, noting that impending revisions to IFRS will not permit the current treatment.

Gap emerges in IFRS over accounting treatment of new French tax regime
French retailer Casino, Guichard-Perrachon discloses that it intends to account for elements of a new tax based on value added under IAS 12 “Income taxes” with effects on the income statement and deferred tax, as guidance by the French Accounting Standards Authority permits varying treatments.