BIC - 2020 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, 2020

Notes

(in thousand euros)

At January 1, 2020

78,966

Deferred tax income/(expense) for the period

CF

(2,697)

Djeep acquisition

(4,454)

Rocketbook acquisition

(5,962)

Booked in Shareholders’ equity and other comprehensive income

(2,765)

Exchange differences

(9,701)

At December 31, 2020

53,388

Notes

December 31, 2019

(in thousand euros)

At January 1, 2019

67,453

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

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 st , 2019. (a)

Origin of deferred tax

December 31, 2020

December 31, 2019

(in thousand euros)

Pension and other employee benefits

37,534

29,351

Intra-Group profit elimination

23,807

22,489

Tax losses carried forward

164

126

Other temporary differences

49,933

38,325

Tax risks under IFRIC 23

(32,472)

(36,903)

NET DEFERRED TAX

78,966

53,388

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, where 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 - 2020 UNIVERSAL REGISTRATION DOCUMENT •