Compagnie des Alpes // 2020 Universal Registration Document

5 FINANCIAL INFORMATION

Consolidated financial statements

Short-term or low-value asset contracts The Group applies the exemption from recognition on the balance sheet of short-term contracts ( i.e. contracts with a term of less than or equal to 12 months, with no renewal option on their effective date) and contracts for low-value assets (mainly including leases of IT equipment and vehicles). The associated rents are recognised in the income statement on a straight-line basis over the term of the contract. 8.1.3 Amendment to IFRS 16 “Reductions in rents linked to Covid-19” The amendment to IFRS 16 “Reductions in rents linked to Covid-19” was adopted by the EU on 09/10/2020 (EU regulation no. 2020/1434) and is to be applied no later than 1 June 2020 for fiscal years beginning on 1 January 2020 (or after this date). This amendment to IFRS 16 only allows tenants (and not lessors) to choose to apply a practical simplification measure. This accounting option only offers tenants the option to assess whether a reduction in rents linked to Covid-19 is a contract modification. In practice, the application of the amendment leads tenants to recognise the reductions in rents linked to Covid-19 as if they were not a modification of the contract. This amounts to recognising the impact of the reduction in rent on the tenants’ income for the period (negative variable rent), and not spreading it over the residual term of the contract. The right of use is not impacted and its amortisation continues without change. This amendment only concerns reductions in rents related to Covid-19 which meet the following three cumulative conditions: l the change in lease payments results in the revised lease consideration being substantially the same as, or less than, the lease consideration immediately prior to the change; l if there is a reduction in rent payments, this only applies to payments originally due no later than 30 June 2021; l there must be no substantial change in the other terms and conditions of the contract. This exemption is an accounting option that must be applied consistently to contracts with similar characteristics and in similar circumstances (or to all contracts). Its application is retrospective. Pursuant to this amendment, the reduction in rent for Parc du Futuroscope granted by the department of La Vienne for the period from 14 March to 16 June 2020 was recognised as a rent reduction in the income for the period for an amount of €737 thousand. The Group conducted a review of its tax positions to determine whether the IFRIC 23 interpretation could have an impact on the Group’s consolidated financial statements. No additional tax liability was recognised. The accounting principles and methods relating to income tax described in the consolidated financial statements at 30 September 2019 remain unchanged, except for the following clarifications: l a liability is recognised in the Group’s statement of financial position when a tax risk resulting from positions taken by the Group, or one of its subsidiaries, is considered probable, assuming that the tax authorities have all the necessary information to carry out its controls; 8.2 APPLICATION OF IFRIC 23 INTERPRETATION

Leases are recognised in the Group’s balance sheet, with a recognition: l of an asset representing the right to use the underlying asset during the term of the contract; l of a debt in respect of the obligation to pay rent. Rights of use The right of use is initially measured at its cost on the effective date of the contract, i.e. the date on which the underlying asset is made available to the Group. The cost of a right of use includes: l the initial amount of the lease liability; l advance payments, net of any benefits received from the lessor; l the initial direct costs incurred; and l the estimated restoration costs of the leased asset, if applicable. The right-of-use asset is amortised on a straight-line basis over the shorter of its useful life and the term of the contract. It is subject to impairment tests. Lease liability The lease liability is initially measured at the present value of the payments due over the term of the contract. These payments include: l fixed rents (including rents considered as fixed in substance) less benefits to be received; l variable rents based on an index or a rate; and l early termination penalties when the Group is reasonably certain to exercise the exit option on the effective date of the contract. To determine the present value of lease payments, the Group uses its incremental debt ratio at the effective date of the contract when the implicit rate of the contract is not easily determinable. This is the rate that the lessee would obtain to finance an asset of identical value, in a similar economic environment, and over a similar period and with similar guarantees. The lease liability is recognised at amortised cost, using the effective interest rate method. At each closing date, it is increased by the interest for the period and reduced by the amount of payments made. The lease liability is revalued in the event of a revision of variable rents based on an index or a rate, or when the Group modifies its assessment of the reasonably certain nature of the exercise of a renewal or early termination option. In such a case, the carrying amount of the right- of-use is adjusted for an equivalent amount or, if it has already been reduced to zero, the impact is recognised in the income statement. Lease term The term of a lease is the non-cancellable period plus (or minus) the periods covered by a renewal (or termination) option when the latter is reasonably certain to be exercised. Management exercises its judgement to determine the term of a lease when it includes renewal options exercisable only by the Group. It takes into account all the relevant factors that create an economic incentive to exercise or not exercise the option. After the effective date of the contract, the Group may revise the term of a contract in the event of a significant event or change in circumstance under its control that affects the reasonably certain nature of its exercise (or non-exercise) of a renewal or termination option.

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Compagnie des Alpes I 2020 Universal registration document