DERICHEBOURG - Universal registration document 2019-2020

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Financial statements Consolidated financial statements for the year ended September 30, 2020, in compliance with IFRS Accounting policies, rules and methods

Valuation rulesand methods 2.3 Income from ordinarayctivities (revenue) 2.3.1 Consolidatedrevenue represents, for Business Services, the amount of services invoiced to customersoutside the Groupwhen the services are supplied. For EnvironmentalServices, revenue is recognizedwhen control of the productsmanufacturedis transferred,usuallyupon shipping. It includes,after eliminationof intra-Grouptransactions,the revenueof fully consolidatedcompanies. Deferred taxes 2.3.2 In accordance with IAS 12, deferred taxes are recognized on the temporary differences between the carrying amounts of assets and liabilities and their tax base. In accordance with the liability method, they are calculatedbased on the expectedtax rate for the periodwhen the carrying amount of the asset or liability is recoveredor settled. The effects of changes in tax rates from one period to another are recognized in the income statement or in equity, according to the symmetryprinciple,for the periodduringwhich the changeoccurred. Deferred taxes relating to items recognized directly in shareholders’ equity are also recognizedin shareholders’equity. Deferredtax assets resultingfrom temporarydifferences,tax losses and tax credits carried forward are limited to the estimated amount of tax recoverable. This is evaluated at year-end, based on the profit forecasts of the tax entities concerned. Deferred tax assets and liabilities are not discounted. Earningsper share 2.3.3 Basic earningsper share are definedas the Group share of net income, divided by the weightedaverage number of shares outstandingduring the year, after deductionof shares boughtback. To calculate diluted earnings per share, the average number of shares outstandingis adjustedto take into account the dilutiveeffect of equity capital instruments issued by the Group that are likely to increase the number of shares outstanding, such as options to subscribe for or purchaseshares. Intangibleassets 2.3.4 Intangible assets that are identifiable or separately controlled by the Group are recognized as assets on the balance sheet. They mainly include computer software and are amortized on a straight line basis over their useful life, which is generally between twelve months and five years, depending on their significance. Intangible assets acquired are recognizedon the balancesheet at their acquisitioncost.

Goodwill 2.3.5 Goodwill represents the differencerecognized,on the date a company enters into the consolidationscope, between the acquisitioncost of its shares, and the Group’s share of the fair value on the acquisitiondate of the assets, liabilities and contingent liabilities attributable to the Companyacquiredon the date of purchaseof the shares. Positivegoodwill is recognizedas assets on the balancesheet under the heading “Goodwill”. Negative goodwill is recognized directly in the income statement in the year of acquisition under the item “Other Impairment of non-current assets othtehran 2.3.6 financialnon-current assets Goodwill, intangible assets and property, plant and equipment are subjectedto impairmenttesting in certaincircumstances: for non-currentassetswhoseuseful life is indefinite(as in the case of p goodwill),impairmenttestingis carriedout at least onceper year, and any time thereis an indicatorof impairment; for other non-currentassets, testing is only carriedout when there is p an indicatorof impairment. Assets subjectedto impairmenttests are grouped into cash generating units (CGUs) which are groupings of similar assets whose utilization generates identifiable cash flows. When the recoverable amount of a CGU is less than its net carrying amount, an impairment provision is recognized against operating income. The recoverable amount of the CGU is the higher of the fair value less the costs to sell and the value in use. The value in use is determinedby discountingthe future cash flows likely to arise from an asset or a CGU. These future cash flows are estimatedover a periodof five years. Beyondthat period, cash flows are extrapolatedby applyinga growthrate to infinity. The CGUs definedby the Group relate tothe followingbusinesses: EnvironmentalServices; p BusinessServices. p These impairmenttests are conductedannuallyat September 30. non-recurringexpenses”. Goodwill is not amortized.

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