Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

IFRS ژ 16 – Leases 1.1.1.1. IFRS ژ 16 replaces IAS ژ 17 and the related IFRIC and SIC interpretations and introduces new rules of accounting for leases. Econocom is affected by this standard as both: a lessor, as part of its TMF business; and • lessee (premises and vehicles). • Econocom functioning as a lessor Virtually all of Econocom’s lease transactions involving the Group as lessor relate to finance leases, and Econocom acts as dealer lessor. In such cases, there are no changes to the Group’s accounting policies. Some sale and leaseback-type transactions will be accounted for: in accordance with IFRS ژ 9 (to which • IFRS ژ 16 refers) when the conditions for recognising a sale within the meaning of IFRS ژ 15 between the lessee and Econocom are not met; in accordance with IFRS ژ 16 (direct finance • lease) if the transfer of the asset to Econocom by the lessee meets the criteria set out in IFRS ژ 15. In both cases, Econocom recognises a financial asset. Revenue is not recognised at the transaction date and financial income relating to operating activities is recognised over the entire lease term based on the interest rate implicit in the lease. In the case of a sale without recourse to a refinancing institution of a sale and leaseback agreement, only the corresponding margin is recognised at the date of sale.

STANDARDS, AMENDMENTS 1.1.1. AND INTERPRETATIONS ADOPTED BY THE EUROPEAN UNION AND APPLICABLE AT 1 ژ JANUARY 2019 The standards, amendments to standards and interpretations, published by the IASB and presented below are mandatory since 1 ژ January 2019. The following standard had an impact on the Group's financial statements: IFRS ژ 16 – Leases. • The following standards did not have a material impact on the Group’s financial statements: Interpretation of IFRIC ژ 23 – Uncertainty • over Income Tax Treatments; Amendments to IFRS ژ 9 – Prepayment • Features with Negative Compensation; Amendments to IAS ژ 28 – Long-Term • Interests in Associates and Joint Ventures; Amendments to IAS ژ 19 – Plan • Amendment, Curtailment or Resettlement; Amendments to IAS ژ 1 and IAS ژ 8 – • Modification of the definition of the term “material”; Annual Improvements to IFRS ژ 2015-2017: • IFRS ژ 3 and IFRS ژ 11 – Recognition by ▶ Stage of a Business Previously Classified as a Joint Venture; IAS ژ 12 – Tax Consequences of ▶ Dividends; IAS ژ 23 – Borrowing Costs. ▶

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2019 annual report