Aéroports de Paris - 2019 Universal registration document

FINANCIAL INFORMATION ON THE ASSETS, FINANCIAL POSITION AND CONSOLIDATED FINANCIAL STATEMENTS 18 GROUPE ADP CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2019

6.2.1 IFRS 16 Lease contracts, Groupe ADP as Lessee

Contracts on the scope of this standard mainly concern real estate and vehicles lease contracts. In accordance with the provisions of the standard, the Group has chosen to use the two practical expedients offered to to lease agreements and not apply IFRS 16 restatement to contracts which: ◆ the underlying asset is of low value; the Group has adopted €5,000 as a threshold; ◆ the initial duration of the contract is less than or equal to 12 months. The right of use related to lease contracts restated according to IFRS 16 are included in tangible fixed assets and the lease debt is included in the other depts and deffered income for the part less than one year, and in non-current dept for the part higher than one year (see note 9.4.1). Interest expense on lease obligations is presented in the financial result in Note 9.3.

The Group applies IFRS 16 “Leases” with effect from January 1, 2019. This standard requires for each lease agreement in which the Group is a lessee, with some exceptions, the recognition of an asset related to the right of use for lease contracts previously classified as operating leases pursuant to IAS 17 and a lease debt equivalent to the present value of the remaining payments of the lease. The Group discounts the lease obligations of the contracts at the marginal borrowing rate taking into account the remaining term of the contracts at the date of first application of the standard. The options selected by the Group for the transition are described in Note 1.3. The Group assesses whether a contract is a lease under the new IFRS 16 standard at the contract’s inception. This valuation requires the exercise of judgment to assess whether the contract relates to a specific asset, and if the Group obtains substantially all the economic benefits associated with the use of the asset and has the ability to control the use of that asset.

The assets related to the use right are detailed as follows:

Land and improvements

Plant and equipment 1

Total

of land Buildings

Other

(in millions of euros)

Carrying amount as at Jan 1, 2019 2

7

38

6 2

- - - - - - -

51 57 (1)

Purchases

42

13

Disposals and write-offs

-

(1)

-

Depreciation and Amortisation

(3) 46 49 (3)

(6) 44 49 (5)

(3)

(12)

Carrying amount as at 31 December 2019

5 8

95

Gross value

106 (11)

Accumulated amortisation & depreciation

(3)

1 Including vehicles. 2 After first application of IFRS 16 (see note 1.3).

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AÉROPORTS DE PARIS ® UNIVERSAL REGISTRATION DOCUMENT 2019