Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

IFRS ژ 17 • application of which is mandatory from 1 ژ January 2021. The Group is currently in the process of assessing any impacts of the first application of these texts. Basis for preparation 1.2. and presentation of the consolidated financial statements All amounts in the Consolidated financial statements are presented in € millions. The fact that figures have been rounded off to the nearest decimal point may, in certain cases, result in minor discrepancies in the totals and sub-totals in the tables and/or in the calculation of percentage changes. BASIS FOR REPORTING 1.2.1. These accounting policies set out below have been consistently applied to all the ژ years presented in the financial statements. The financial statements were prepared on a historical cost basis, with the exception of: certain financial assets and liabilities • which are measured at fair value; non-current assets held for sale, which are • recognised and measured at the lower of net carrying amount and fair value less costs to sell as soon as their sale is deemed highly probable. They are no longer amortised once they are classified as assets (or a group of assets) held for sale. Insurance contracts, the

In the consolidated income statement for 2019, revenue was reduced by €25.6 million while profit (loss) from continuing operations was not affected. The application of IFRS ژ 16 to leases granted by Econocom in the 2018 financial ژ year would have reduced revenue by €71.9 million and profit (loss) from continuing operations by €2.1 million. The application of IFRS ژ 16 had no impact on Econocom’s lessor operations in the consolidated financial position or the statement of cash flows. IFRIC ژ 23 – Uncertainty over 1.1.1.4 Income Tax Treatments IFRIC ژ 23 clarifies the application of the provisions set out in IAS ژ 12 – Income Taxes in terms of recognition and measurement when there are uncertainties over income tax treatments: professional judgement should be used to • determine whether each tax treatment should be considered independently or whether some tax treatments should be considered together; the most likely amount or the expected • value of the tax treatment should be used for accounting purposes. The Group has not identified any significant impact. STANDARDS, AMENDMENTS 1.1.2 AND INTERPRETATIONS NOT YET ADOPTED BY THE EUROPEAN UNION Pending their definitive adoption by the European Union, the Group has not anticipated the application of the following standards and interpretations: Amendments to IAS ژ 1 and IAS ژ 8 • Modification of the definition of the term “material”, the application of which is mandatory from 1 ژ January 2020;

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2019 annual report