EXEL industries - 2019 Universal Registration Document

Consolidated fi nancial statements 4

Notes to the consolidated fi nancial statements

the date the plan is established, past service costs are expensed on a straight-line basis over the average remaining period for the corresponding rights to be fully vested. Actuarial gains and losses result from changes in actuarial assumptions and adjustments related to experience (di ff erences between actuarial assumptions and assumptions based on actual experience). Actuarial gains and losses are recognized directly in equity and in consequence have no impact on the income statement. For defined benefit plans, the expenses recognized in operating income include service costs, the amortization of past service costs, the discounting costs as well as the e ff ects of any plan curtailment or settlement. 1.17 Use of estimates To prepare consolidated fi nancial statements in compliance with the rules provided for under IFRS, Group Management makes a certain number of estimates and adopts certain assumptions that may have an impact on the amounts disclosed under assets and liabilities. These include amounts for depreciation, amortization and provisions, information on contingent assets and liabilities on the closing date of the consolidated fi nancial statements and amounts recognized under income and expenses for the fi scal year. These estimates are based on the assumption of going concern and include assumptions that Management considers relevant and feasible in the Group’s operating environment and based on feedback available. Estimates and assumptions are reviewed on a regular basis and at a minimum at the end of each fi scal year. They may vary if the circumstances on which theywere based change or new information becomes available. Actual results may di ff er from these estimates. The main estimates made by the Group when preparing the fi nancial statements concern notably assumptions adopted for calculating deferred taxes, the valuation of intangible assets, the impairment of current assets and current and non-current provisions. 1.18 Segment information The main business activity of EXEL Industries group is precision spraying, for agriculture and industry. The Group also competes in the garden watering products market and in sugar beet harvesters.

1.19 Financial instruments

Treasury shares In accordance with IAS c 32, treasury shares (own equity instruments) held by the Group through the share repurchase program in connection with the liquidity agreement are recorded at acquisition cost and deducted from equity. Proceeds from the disposal of treasury shares are recognized under equity, net of income tax, and are not included under income in the fi scal year. Derivative fi nancial instruments In the fi scal year, the Group has on occasion made use of interest rate or foreign exchange hedges to reduce its exposures. The Group did not hold any derivative fi nancial instruments at the close of the fi scal year. Financial liabilities Non-current loans and fi nancial liabilities are valued at their historical nominal value considered close to their amortized cost. 1.20 Revenue from ordinary activities Revenue from ordinary activities results from the manufacturing and sales of goods, purchases and resales of goods and sales of product services as part of the Group’s main activities. Income from the activity is recorded, in compliance with IFRS c 15, and the income derived from the sale of goods is recognized upon the transfer of control of the income. Any trade discounts rebates and related items granted to customers are recognized as amounts deducted from revenue. Revenue from the sale of services is recognized at fair value of the consideration received or receivable. Revenue from the sale of products is recognized when delivery has been completed, the amount of revenue can be reliably measured and the economic bene fi ts of the transaction will fl ow to the Group.

EXEL Industries Group I 2019 Universal Registration Document

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