IFRS 14-01 a-c (Part Level Submission) The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company's website. Click here to view Appendix F. Use the company's annual report to answer the following questions. Louis Vuitton is a French company and is one of the leading international fashion houses in the world. Louis Vuitton has been named the world's most valuable luxury brand. Note that its financial statements are IFRS-based and are presented in euros (). The complete financial statements are available at the company's website. CONSOLIDATED INCOME STATEMENT (EUR millions, except for earnings per share! Notes 2013 23-24 Revenue Cost of sales 2015 35,664 (12,553) 2014 30,638 (10,801) 29,016 19,997) 23,111 19,837 19,019 (11,744) 12,373) (10,767) 12,2121 (13,830) 12,663) (13) 6,605 (221) 15) 1231 23-24 5,715 6,017 1284) (119) 5,431 Gross margin Marketing and selling expenses General and administrative expenses Income (loss) from joint ventures and associates Profit from recurring operations Other operating income and expenses Operating profit Cost of net financial debt Other financial income and expenses Net financial income (expensel Income taxes Net profit before minority interests Minority interests Net profit, Group share 6,384 (78) (336) (414) (1,969) 4,001 (115) 3,062 2,947 12,273) 5,898 (101) 1971 (1981 (1,753) 3,947 (511) 3,436 6,105 (428) (457) 3,573 5,648 7.11 502,395,491 6.87 500,283,414 Basic Group share of net earnings per share (EUR) Number of shares on which the calculation is based Diluted Group share of net earnings per share EUR Number of shares on which the calculation is based 11.27 501,309,369 11.21 503,861,733 7.08 6.83 504,894,946 503,217,497 CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES EUR millions 2015 4,001 2014 6,105 2013 3,947 Net profit before minority interests 534 Translation adjustments Tax impact 104 638 (346) (48) (394) 963 (16) Change in value of available for sale financial assets Amounts transferred to income statement Tax impact 494 (3,326) 184 (35) (103) Change in value of hedges of future foreign currency cash flows Amounts transferred to income statement Tax impact (2,648) (30) (163) 304 (265) (17) 57 22 (136) (2,146) Gains and losses recognized in equity, transferable to income statement Change in value of vineyard land Amounts transferred to consolidated reserves Tax impact (17) (10) 9 (18) (127) 242 Employee benefit commitments: change in value resulting from actuarial gains and losses Tax impact (161) 52 (109) Gains and losses recognized in equity, not transferable to income statement (127) 3,832 Comprehensive income Minority interests Comprehensive income, Group share 4,706 (558) 4,787 (532) 1565) 4,148 3,267 4,255 CONSOLIDATED BALANCE SHEET Notes 2015 2014 2013 ASSETS (EUR millions) 13,572 10,122 Brands and other intangible assets Goodwill Property, plant and equipment Investments in joint ventures and associates Non-current available for sale financial assets Other non-current assets Deferred tax 12,596 9,058 9,621 480 7,080 457 913 Non-current assets 11,157 729 574 552 1,945 38,651 10,096 2,521 384 2,355 3,594 13,031 8,810 10,387 519 580 489 1,436 35,252 9,475 2,274 354 1,916 4,091 18,110 40,205 Inventories and work in progress Trade accounts receivable Income taxes Other current assets Cash and cash equivalents 8,492 2,174 223 1,856 3,226 15,971 Current assets 18,950 Total assets 57,601 53,362 56,176 Notes 2015 2014 LIABILITIES AND EQUITY (EUR millions) 2013 15.1 152 152 2,579 (240) 1,137 949 152 2,655 (374) 492 3,849 (451) Share capital Share premium account Treasury shares and LVMH share-settled derivatives Cumulative translation adjustment Revaluation reserves Other reserves Net profit, Group share Equity, Group share Minority interests (8) 1,019 16,189 12,171 3,573 5,648 21,763 1,240 3,900 16,001 3,436 26,879 1,028 Total equity 27,907 Long-term borrowings Non-current provisions Deferred tax Other non-current liabilities 23,003 5,054 2,291 4,392 6,447 4,149 1,797 4,280 6,404 24,339 1,460 25,799 4,511 1,950 4,685 7,957 19,103 3,769 3,960 640 421 3,909 12,699 Non-current liabilities 18,184 16,630 21.1 Short-term borrowings Trade accounts payable Income taxes Current provisions Other current liabilities 4,189 3,606 549 332 19 21.2 4,674 3,297 357 324 2,987 11,639 3,499 Current liabilities 12,175 Total liabilities and equity 57,601 53,362 5 6,176 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR millions) Number of shares Share capital Share Treasury Cumulative premium shares and translation account LVMH- adjustment share settled derivatives Net profit and other reserves Total equity Total Revaluation reserves - Vineyard Employee land benefit commit- ments Group share Available for sale financial assets Minority interests Hedges of future of future foreign currency cash flows 17 152 3 ,848 15.2 (414 15.4 3 42 (350) 1943 912 118 18 758 188 (88) 51 17,765 - 3,436 3,436 24,424 819 3,436 4,255 1,084 21 511 25,508 840 3,947 4,787 . . (350) 912 1 8 188 51 1 31 31 3 34 (103) 17 (110) Notes As of December 31, 2012 508,163,349 Gains and losses recognized in equity Net profit Comprehensive income Stock option plan and similar expenses (Acquisition /disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options 1,025,418 Retirement of LVMH shares (1,395,106) Capital increase in subsidiaries Interim and final dividends paid Acquisition of a controlling interest in Loro Piana Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Purchase commitments for minority interests shares 507,793,661 (110) 67 67 - (66) 66 (1,500) (1,500) (228) (1,728) 235 235 1 - (149) 152 3,849 (451) (8) 500 2,855 (2,648) 136 (122) 946 (15 (37) 1 96 173] (216) 19,437 - 5,648 5,648 37 1 (1 [73] (76) (216) (529) 26,879 1,028 12,381) 108 5,648 457 3,267 5 65 372 (745) 27,907 2,273) 6,105 3,832 39 - 500 (2,648) (122) (15) (96) (17) 10 - 10 (50) 50 (1,579) (1,579) (328) (1,907) (1.203) 15,652) 15) - 121 66,855) (5) 121 - 11 32 16,855) 6 30 Gains and losses recognized in equity Net profit Comprehensive income Stock option plan and similar expenses (Acquisition/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options 980,323 Retirement of LVMH shares (1,062,271) Capital increase in subsidiaries Interim and final dividends paid Distribution in kind of Herms shares. See Note 8. Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Purchase commitments for minority interests' shares As of December 31, 2014 507,711,713 Gains and losses recognized in equity Net profit Comprehensive income Stock option plan and similar expenses (Acquisition/disposal of treasury shares and LVMH share-settled derivatives Exercise of LVMH share subscription options 552,137 Retirement of LVMH shares (1,124,740) Capital increase in subsidiaries Interim and final dividends paid Changes in control of consolidated entities Acquisition and disposal of minority interests' shares Purchase commitments for minority interests shares As of December 31, 2015 (48) 17,819 (48) 21,763 (73] 1,240 (121) 23,003 152 2,655 (374) 492 645 207 (103) 14 ( 25 931 3 3 (133) 25 3 - 645 (103) (25) 33 2 5 3,573 3,573 35 ,573 4,148 35 428 558 2 4,001 4,706 37 23 (13) 10 . 10 35 (111 111 89 (1,659) 19 5 11 19,762 (1,659 19 5 1 1 24,339 (229) 1 3 (198) 1,460 (1,888) (8) 2 (187) 25,799 152 2,579 (240) 1,137 1 04 (11) 964 (108) CONSOLIDATED CASH FLOW STATEMENT Notes 2015 2014 2013 5,431 5,898 49 (EUR millions) 1. OPERATING ACTIVITIES AND OPERATING INVESTMENTS Operating profit Income/(loss) and dividends from joint ventures and associates Net increase in depreciation, amortization and provisions Other computed expenses Other adjustments Cash from operations before changes in working capital Cost of net financial debt: interest paid Income taxes paid 6,384 27 2,081 (456) (91) 1,895 (188) (84) 7,945 (75) (1.807) 6,063 (429) 7,080 (116) (1,639) 1,435 (29) (76) 7,277 (111) (1,832) 5,334 (620) Net cash from operating activities before changes in working capital Change in working capital 14.1 5,325 (718) 14.2 5,634 (1,955) 3,679 4,607 (1,775) 2,832 4,714 (1,657) 3,057 (78) (197) 160 38 71 1265) (240) (511) (237) (167) (232) (11) (2,161) (2,260) 59 35 81 3 Net cash from operating activities Operating investments Net cash from operating activities and operating investments (free cash flow) II. FINANCIAL INVESTMENTS Purchase of non-current available for sale financial assets Proceeds from sale of non-current available for sale financial assets Dividends received Income taxes paid related to financial investments Impact of purchase and sale of consolidated investments Net cash from (used in) financial investments III. TRANSACTIONS RELATING TO EQUITY Capital increases of LVMH SE Capital increases of subsidiaries subscribed by minority interests Acquisition and disposals of treasury shares and LVMH share-settled derivatives Interim and final dividends paid by LVMH SE Income taxes paid related to interim and final dividends paid Interim and final dividends paid to minority interests in consolidated subsidiaries Purchase and proceeds from sale of minority interests Net cash from (used in) transactions relating to equity Change in cash before financing activities IV. FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Purchase and proceeds from sale of current available for sale financial assets Net cash from (used in) financing activities V. EFFECT OF EXCHANGE RATE CHANGES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1+11+111+IV+VI 15.2 15.3 (1,671) (1,619) (79) (113) (1,501) (137) (304) (228) (336) (220) (150) (2,048) (1,251) (1,961) (2,090) 1,078 639 1,008 12,443) 13 (3) 2,407 (2,100) (106) 201 3,095 (1,057) 101 2,139 (1,438) (33) (393) 27 47 867 935 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD 14 3,783 3,390 2,916 3,783 (1,955) 1,981 2,916 (1,980) TOTAL INCOME TAXES PAID (2,376) Transactions included in the table above, generating no change in cash: - acquisition of assets by means of finance leases 4 5 7 (a) The distribution in kind of Herms shares had no impact on cash, apart from related income tax effects. See Note 8 (b) Compute the company's return on ordinary shareholders' equity for the year ended December 31, 2015. (Round answer to 1 decimal place, e.g. 15.5.) Company's return on ordinary shareholder's equity Click if you would like to Show Work for this question: Open Show Work