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

In accordance with IFRS 9 “Financial Instruments”, equity interests in non-consolidatedcompaniesare consideredby their nature to be assets availablefor sale and as such are recognizedat their fair value. Where the shares are listed, the fair value is the price quoted on the stock market. If the fair value cannot be determinedreliably, the shares are recognized at cost price. Changes in fair value are recognized directly in shareholders’equity in an accountcreatedfor this purpose. Where there is an objective indication of impairment, an irreversible provision for impairment is recognized in the income statement. This provisionmay be reversedonly when the relevant shares are sold. Loans are recognizedat amortized cost. An impairmentprovisionmay be recognized if there is an objective indication of such impairment. The amount correspondingto the differencebetween the net carrying amount and the recoverable amount is recognized in the income statement. It may be reversed if the recoverable amount increases subsequently. Inventory andwork-in-progress 2.3.12 Inventories of raw materials and goods purchased for resale are recognized using the weighted average cost method. The work-in-progress and finished goods of Environmental Services are valued at cost price, includingthe cost of materialsand labor and other costs directly related to production. At each closing date, inventoriesare valued at the lower of cost or net realizablevalue. Trade andother operatingreceivables 2.3.13 Trade and other operatingreceivablesare recognizedat nominal value, discounted when necessary, and adjusted for any impairment considering any potential risk of non-payment. Provisions for impairmentare determinedon a case-by-casebasis. A specific impairmentprovisionis made for doubtful receivables. Cashand cash equivalents 2.3.14 Cash includes demand deposits and current accounts but excludes bank overdrafts which are included in financial liabilities. Cash equivalentsinclude investmentsheld with a view to meetingshort term cash commitments. Securities include cash deposits, money-market mutual funds and negotiable debt securities which can be realized or sold at any time. They are valued at their market value. Any change in the fair value of these assets is recognizedin the incomestatement. To be consideredas a cash equivalent, they must be easily convertible and subject to only negligiblerisk of loss in capital. Treasuryshares 2.3.15 Companyshares held by the Group are recognizedas a deductionfrom shareholders’ equity at their acquisition cost. Any profits or losses related to the purchase,sale, issue or cancellationof treasuryshares are recognized directly in shareholders’ equity without impacting the incomestatement.

Property, plant andequipment 2.3.7 Property, plant and equipment are recognized at their acquisition or production cost, reduced by the cumulative depreciation and any potential impairmentprovisions. Depreciationcharges are normally applied on a straight line basis over the useful life of the asset; nevertheless,accelerateddepreciationmay be used where it appearsmore appropriatefor the conditions in which the equipmentis used. The useful lives generallyappliedare as follows:

Buildings

10 to 30 years 3 to 10 years 5 to 10 years 4 to 10 years

Equipment and technical installation

Airport equipment

Other tangible assets

Maintenance and repair costs are charged to income, with the exception of those incurred to increase productivity or prolong the useful life of an asset. Investment grants 2.3.8 Investment grants are treated as deferred income. They are brought into incomeover the estimateduseful life of the asset concerned. ICI MANQUE le vrai 2.3.9 contrats de location (vs DOC FR) - cela engenfdreun décalagede numérotation Leases 2.3.9 The assumptions and estimates made to determine the value of lease rights of use and the related liabilities are primarily based on the calculation of discount rates and lease durations. The assumptions made and the methods used to determine them are described in note 2.1.1 IFRS 16 "Leases" applicable to fiscal years beginningon or after January1, 2019. Equity interestsin associates andjoint ventures 2.3.10 The Group’s equity investmentsaccountedfor using the equitymethod are initially recognized at acquisition cost including any goodwill arising, where applicable. Subsequently, their carrying amount is increased or decreased to take into account the Group’s share of profits or losses made after the acquisition date. When the losses are greater than the value of the Group’snet investmentin the entity, they are recognized only if the Group has a contractual commitment to recapitalize the entity or has made payments on its behalf. If there is any indication of impairment, the recoverable amount of the investments consolidated using the equity method is tested in accordancewith the methods described in the note on impairment of non-currentassets, other than financialassets. Othernon-current financiaalssets 2.3.11 This category includes receivables related to equity investments, loans and receivables and assets available for sale (mainly investment securities).

DERICHEBOURG p 2019/2020 Universal Registration Document 146