EXEL industries - 2019 Universal Registration Document
Separate fi nancial statements
Notes to the parent company fi nancial statements
Total fi xed assets
Opening gross value
Reclassi fi cation from line to line
Closing gross value
Separate fi nancial statements (in € thousands)
Increases Decreases
Intangible assets
27,611
12
27,623
Property, plant and equipment
2,795
2
2,797
Financial assets: Equity interests
176,327
10,000
-
186,327
Receivables on interests
124,276
66,000
(14,321)
175,955
Other equity securities
319
162
481
Others
948
2
950
TOTAL
332,276
76,178
(14,321)
-
394,133
Amortization and depreciation
Accumulated depreciation
Accumulated depreciation at closing
Separate fi nancial statements (in € thousands)
at opening Allowances
Reversals
5
Amortization of intangible fi xed assets
4,333
1,167
-
5,500
Depreciation of tangible fi xed assets
2,354
256
2,610
TOTAL
6,687
1,423
-
8,110
Changes a ff ecting provisions for accelerated tax depreciations
Accumulated depreciation
Accumulated depreciation at closing
Separate fi nancial statements (in € thousands)
at opening Allowances
Reversals
For intangible and tangible fi xed assets
32
-
(23)
9
For acquisition costs for securities
1,681
101
-
1,782
REVERSAL OF TAX-DRIVEN PROVISIONS (ACCELERATED c TAX c DEPRECIATIONS)
1,713
101
(23)
1,791
5.3 Financial assets The gross value of equity interests and receivables on interests is the acquisition cost. The net book value of the equity interests is compared to the share of shareholders’ equity of the companies held. When there is inadequate shareholders’ equity, the value in use is determined on the basis of the discounted cash fl ows (DCF) forecasts. A provision for impairment is recognized when the calculated value in use is below the net carrying value. All the testswere carried out using the following principal assumptions for fi scal year 2019: the perpetual rate of growth (from the 6 th c year) is 1.7% depending on the IMF’s long-term in fl ation forecasts; the discount rate is 8.3% (8% in 2018).
The discount rate used for the impairment tests corresponds to the weighted average cost of capital (WACC) estimated on a date close to the closing date. The WACC is calculated on the basis of a target indebtedness of 25% of equity and a risk-free interest rate of 0.3% (ten-year French government bond rate). The valuation is made in the functional currency of the entity and converted at the year-end closing exchange rate. On September c 30, 2019 the Group performed a sensitivity analysis on the perpetual growth assumptions and the discount rate by applying an increase of 100 c bps to the discount rate or a reduction of 50 c bps to the perpetual growth rate. This analysis shows a risk of additional impairment of no more than €74 c million. Expenditures related to the purchase of equity interests are capitalized and amortized over fi ve years as accelerated tax depreciation.
EXEL Industries Group I 2019 Universal Registration Document
93
Made with FlippingBook - Online catalogs