The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A. are presented in Appendix C of this book. LVMH is a Paris-based holding company and one of the world’s largest and best-known luxury goods companies. As a member-nation of the European Union, French companies are required to prepare their consolidated (group) financial statements using International Financial Reporting Standards (IFRS). In LVMH’s Notes to the Consolidated Financial Statements (not presented in Appendix C), the company discloses its method of consolidation:

How does LVMH’s consolidation policy differ from U.S. GAAP?

Appendix C:

The subsidiaries in which the Group holds a direct or indirect de facto or de jure controlling interest are fully consolidated. Jointly controlled companies are accounted for using the equity method. The assets, liabilities, income, and expenses of the Wines and Spirits distribution subsidiaries held jointly with the Diageo group are consolidated only in proportion to the LVMH group's share of operations. Companies where the Group has significant influence but no con- trolling interest are accounted for using the equity method.