Modèle Word ddr danone

Other brands with indefinite useful lives 
As of December 31, 2019, following the impairment test of the other brands with indefinite useful lives, the Group recognized an 
impairment provision in respect of two brands in the EDP Reporting Entity and one brand in the Specialized Nutrition Reporting Entity in 
the aggregate amount of €84 million regarding the new assumptions contained in their strategic plan. 
As of December 31, 2018, following the impairment test of the other brands with indefinite useful lives, the Group 
recognized a €79 
million impairment provision in respect of the Centrale Danone brand. 
Note 11. Financing and financial security, net debt 
and cost of net debt 
Note 11.1. Accounting principles 
Financing 
Debt instruments are recognized in the consolidated balance sheet (i) under the amortized cost method, using their effective interest 
rate, or (ii) at their fair value. 
When the fair value risk of a debt is hedged by a derivative, the change in the fair value of the hedged component of said debt is 
recognized in the consolidated balance sheet, with the counterpart to the entry being to the heading Other financial income (expense), 
which thereby offsets the changes in fair value of the derivative instrument. 
When future cash flows of a debt are hedged by a derivative, the change in the fair value of the effective portion of the derivative 
hedging said debt is recognized in the consolidated balance sheet, with the counterpart to the entry being to consolidated equity, and is 
recycled to profit or loss when the hedged item (the interest flows relating to the hedged debt) impacts the consolidated net income. 
Hybrid financing
Since the contractual terms of the perpetual subordinated debt securities issued by Danone do not stipulate any redemption or coupon 
payment obligation (payment of a coupon is mandatory mainly in the event of the payment of a dividend to Danone’s shareholders): 
• 
they are classified as equity instruments; 
• 
the related coupons are recognized as a deduction from consolidated equity, net of the related tax income. In the consolidated 
statement of cash flows, they are included in Cash flows provided by (used in) financing activities, with the related tax being 
included in Cash flows provided by (used in) operating activities.