BIC - 2019 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

The movement for the year in the Group’s deferred tax position was as follows:

December 31, 2019

Notes

(in thousand euros)

At January 1, 2019 restated

67,453 

Deferred tax income/(expense) for the period*

CF

5,987 

Booked in Shareholders‘ equity and other comprehensive income

3,342 

Exchange differences

2,185 

At December 31, 2019

78,966 

* Including amounts booked for tax risks following the first application of IFRIC 23 as of January 1, 2019.

December 31, 2018

Notes

(in thousand euros)

At January 1, 2018

92,461

Argentina hyperinflation

(484)

Deferred tax income/(expense) for the period  (a)

CF

(604)

BIC Sport disposal

(223)

Booked in Shareholders‘ equity and other comprehensive income

8,186

Exchange differences

897

At December 31, 2018

100,233

Excluding amounts booked to provision for risks and charges (a) First application of IFRIC 23 “Uncertainty over income tax treatments” (see Notes 1 and 17)

(32,780)

At January 1, 2019

67,453

Origin of deferred tax

December 31, 2019

December 31, 2018

At January 1, 2019

(in thousand euros)

Pension and other employee benefits

36,544

36,544

37,534

Intra-Group profit elimination

32,266

32,266

23,807

Tax losses carried forward

5,687

5,687

164

Cello trademark

(15,210)

(15,210)

-

Other temporary differences

40,946

40,946

49,933

Tax risks under IFRIC 23

-

(32,780)

(32,472)

NET DEFERRED TAX

100,233

67,453

78,966

NOTE 14

CHANGE IN NETWORKING CAPITAL

Accounting policies Inventories are stated at the lower of cost and net realizable value. Cost comprises direct raw material costs and, when applicable, ● direct labor costs, as well as those overheads that have been directly incurred in bringing the inventories to their present location and condition. Cost is generally calculated using the weighted average cost method. Net realizable value represents the estimated selling price in the normal course of business less all estimated costs of completion and costs to be incurred in the sale (marketing, selling and distribution). Impairment of financial assets (particularly trade receivables) is based on expected credit losses (no longer on observed losses), ● starting from initial recognition. To determine the expected credit losses, the Group uses the simplified method, thus a provision matrix based on its historical ● observed default rates over the expected remaining life of the trade receivables, which is adjusted for forward-looking estimates. Trade payables are initially measured at fair value. ●

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• BIC GROUP - 2019 UNIVERSAL REGISTRATION DOCUMENT •