DANONE Consolidated financial statements 2019
21
Note 6.
Information concerning the Group’s
operating activities
Note 6.1. Accounting principles
Sales
Danone’s sales mainly comprise sales of finished products. They are recognized in the income statement when the control of goods is
transferred. They are stated net of trade discounts and customer rebates, as well as net of costs relating to trade support and listing or
linked to occasional promotional actions invoiced by customers. These amounts are estimated when net sales are recognized, on the
basis of agreements and commitments with the customers concerned.
Cost of goods sold
The cost of goods sold mainly comprises industrial costs (including raw material costs, depreciation of industrial assets and personnel
costs relating to production activity) and certain logistics and transportation costs.
Selling expense
Selling expenses mainly comprise marketing expenses and consumer promotions as well as sales force overheads.
General and administrative expense
General and administrative expenses mainly comprise other personnel and administrative costs.
Research and Development expense
Development costs are generally expensed as incurred due to the very short time between the date on which
technical feasibility is
demonstrated and the date on which the products are launched. Certain development costs are recognized
under assets in the
consolidated balance sheet (see Note 10 of the Notes to the consolidated financial statements).
Note 6.2. Operating segments
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