If fair value is not readily determinable, the investment is measured at cost.
The Company’s principal investment in associates is still Dassault
Aviation despite the disposal of 810,072 shares in 2014.
The book value of this investment was € 2.4 billion as of 31 December
2014.
The Company is exposed to the risk of unexpected material
adverse changes in the fair value of Dassault Aviation and that of
other associated companies.
For equity investments other than
associates, which make up only a fraction of the Company’s total
assets, the Company regards the risk of negative changes in fair
value or impairments on these investments as non-significant.
Treasury shares held by the Company are not considered to be
equity investments.
Additionally, treasury shares are not regarded
as being exposed to risk, as any change in value of treasury shares
is recognised directly in equity only when sold to the market and
never affects net income.
Treasury shares are primarily held to
hedge the dilution risk arising from employee stock ownership
plans and the exercise by employees of stock options.