EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements Notes to the consolidated fi nancial statements

Notes to the consolidated fi nancial statements

4.5

Signi fi cant accounting policies and basis of c consolidation

Note c 16 Analysis of other current liabilities

79 79

Note c 1

59 67 69 70 70 71 71 72 72 73 73 73 74 77

Note c 17 Net sales

Basis of consolidation

Note c 2 Note c 3 Note c 4 Note c 5 Note c 6 Note c 7 Note c 8 Note c 9

Note c 18 Sta ff costs and headcount 80 Note c 19 Net allowances for provisions and impairment 81 Note c 20 Non-recurring income/(expenses) 81 Note c 21 Financial income/(expenses) 81 Note c 22 Corporate income tax 82 Note c 23 Change in working capital requirements (WCR) 83 Note c 24 Related-party transactions 84 Note c 25 O ff -balance sheet commitments and c contingent liabilities 84 Note c 26 Liquidity risk 84 Note c 27 Tax risk 84 Note c 28 Events after the reporting period 85 Note c 29 Statement of fees for Statutory Auditors and c auditing services 85

Goodwill

Intangible assets

Property, plant and equipment Investments in associates Non-current fi nancial assets Inventories and work-in-progress

4

Trade receivables

Note c 10 Other receivables

Note c 11 Cash and cash equivalents

Note c 12 Share capital

Note c 13 Provisions for contingencies and expenses Note c 14 Analysis of fi nancial debt by nature Note c 15 Repayment schedule of fi nancial debt at c September c 30, 2019

78

Note c 1 Signi fi cant accounting policies and basis of consolidation

With this in mind, it reviewed the principal transactions and contracts occurring throughout its activities in light of the new standard. This analysis indicated that the main impact on revenue recognition arises, as a deduction from sales, from the right to returnmerchandise in the sugar beet harvesting and agricultural spraying segments. The Group makes a distinction between insurance-type guarantees and service-type guarantees. The insurance-type guarantee involves the creation of a provision (IAS c 37) whereas the service- type guarantee results, from an accounting point of view, in revenue spread out over the term of the guarantee. These principles in compliance with IFRS c 15 have not led to a change in the context of the transition. The standard’s retrospective e ff ect is processed using the simpli fi ed retrospective method: shareholders’ equity at the current fi scal year opening is adjusted for the cumulative tax impact (note III). The 2019 fi nancial statements were fi nalized by applying IFRS c 15 principles whereas the 2018 comparative statements were maintained in accordance with the former guidelines.

1.1 Statement of compliance The financial statements of EXEL Industries group are prepared in accordance with IFRS international accounting standards (International Financial Reporting Standards) as adopted by the European Union on September c 30, 2019 and available online on the European Commission’s website. Standards, amendments and interpretations of c the c standards adopted by the European Union, which c are compulsory from the start of the fi scal year which began on October c 1, 2018 The European Union adopted the following amendments, with compulsory application inside the Group from the reporting period beginning October c 1, 2018. Although these new amendments presented below are applied inside the Group, they do not have any material impact on the Group’s consolidated fi nancial statements. First application of IFRS c 15 – Revenue from contracts with c customers Starting October c 1, 2018 the Groupwill apply IFRS c 15 to replace IAS c 11 and IAS c 18 on the recognition of revenues from ordinary activities.

EXEL Industries Group I 2019 Universal Registration Document

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