EXEL Industries // 2020 Universal registration document

Consolidated fi nancial statements Notes to the consolidated fi nancial statements

Notes to the consolidated fi nancial statements

5.5

Signi fi cant accounting policies and basis of consolidation

Analysis of other current liabilities

76 76 77 78 78 79

Note 1

Note 16 Note 17 Note 18 Note 19 Note 20 Note 21 Note 22 Note 23

57 64 66 67 68 69 69 69 70 70 71 71 71 74

Net sales

Basis of consolidation

Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8 Note 9 Note 10 Note 11 Note 12 Note 13 Note 14 Note 15

Sta ff costs and headcount

Goodwill

Net allowances for provisions and impairment 78

Intangible assets

Non-recurring income/(expenses) Financial income/(expenses)

Property, plant and equipment Investments in associates Non-current fi nancial assets Inventories and work-in-progress

Corporate income tax

Change in working capital requirements (WCR)

80

Trade receivables Other receivables

Related-party transactions

81

Note 24 Note 25

O ff -balance sheet commitments and contingent liabilities

81 81 81 82

Cash and cash equivalents

5

Liquidity risk

Note 26 Note 27 Note 28 Note 29

Share capital

Tax risk

Provisions for contingencies and expenses Analysis of fi nancial debt by nature Repayment schedule of fi nancial debt at September 30, 2020

Events after the reporting period

Statement of fees for Statutory Auditors and auditing services

82

75

Note 1 Signi fi cant accounting policies and basis of consolidation

1.1 Accounting standards The fi nancial statements of the EXEL Industries group are prepared in accordance with IFRS international accounting standards (International Financial Reporting Standards) as adopted by the European Union as of September 30, 2020 and available online on the European Commission’s website. Standards, amendments and interpretations of the standards adopted by the European Union, which are compulsory from the start of the fi scal year which began on October 1, 2019 The European Union adopted the following amendments, with compulsory application inside the Group from the reporting period beginning October 1, 2019. The new amendments presented below, which are applied within the Group, do not have a material impact on the Group’s consolidated fi nancial statements. Initial application of IFRS 16 – Leases On January 13, 2016, the IASB published a new standard on lease accounting. This standard, which replaces IAS 17 and its

interpretations, will the majority of leases to be recognized on lessees’ balance sheets using a single model, in the form of a right-of-use asset and a lease liability (waived for lessees who are classi fi ed as having simple leases or fi nance leases). This new standard applies to fi scal years beginning on or after January 1, 2019. As a lessee, the Group’s main commitments are real estate leases and vehicle rentals. The Groupwill complete the transition to IFRS 16 using the simpli fi ed retrospective method. At October 1, 2019, the amount of lease liabilities is calculated by discounting the residual rents with the rates corresponding to the estimated duration of the contracts. As lessee, the Group uses the incremental borrowing rate, calculated by currency area, corresponding to the risk-free rate in force in the area plus the Group’s risk premium. The weighted average incremental borrowing rate applied to lease liabilities as of October 1, 2019 was 1.3%. The corresponding rights of use will be recognized in an amount equal to that of the lease liability. The initial application of IFRS 16 thus has no impact on the amount of the Group’s shareholders’ equity at October 1, 2019.

EXEL Industries group I 2020 Universal Registration Document

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