Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

The Group initially recognises a liability in respect of put options granted to non-controlling shareholders of the entities concerned. The difference between the Group’s liability under put options and the carrying amount of the non-controlling interests is recognised as a deduction from equity attributable to owners of the parent. Put options are remeasured each ژ year; any subsequent changes in the option relating to changes in estimates or to the unwinding of the discount on the option are also recognised in equity. Changes in the liability under put options on non-controlling interests are accounted for in line with the treatment applied upon the acquisition of noncontrolling interests. ASSETS AND LIABILITIES 2.1.5. HELD FOR SALE AND DISCONTINUED OPERATIONS IFRS ژ 5 – Non-current Assets Held for Sale and Discontinued Operations requires a specific accounting treatment and presentation of assets held for sale and discontinued operations (corresponding to operations that have been disposed of or classified as held for sale). A non-current asset or group of directly related assets and liabilities, is classified as “held for sale” if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or asset group) must be available for immediate sale in its present condition and its sale must be highly probable. Management must be committed to the sale and the sale should be expected to qualify for recognition as a completed sale within one ژ year of the date of classification. These assets (or disposal group) are measured at the lower of their carrying amount and estimated sale price less costs to sell. These assets cease to be amortised

from the moment they qualify as “assets (or group of assets) held for sale”. They are presented on a separate line on the Group statement of financial position, without restatement of previous periods. An operation discontinued, sold, or held for sale is defined as a component of an entity with cash flows that can be clearly distinguished from the rest of the entity and which represents a major, separate line of business or area of operations. For all published periods, income and expense relating to discontinued operations are presented separately in the income statement under “Profit (loss) from discontinued operations” and are restated in the statement of cash flows. Profit from discontinued operations A discontinued operation is a component which the Group has either disposed of or has classified as held for sale, and which: represents a separate major line of • business or geographical area of operations; is part of a single, coordinated plan to • dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a • view to resale. Profit from discontinued operations includes: the post-tax profit or loss of discontinued • operations generated up until the disposal date, or until the end of the reporting period if the business was not disposed of by the ژ year-end; the post-tax gain or loss recognised on • the disposal of continued operations that have been disposed of by the ژ year-end.

167

2019 annual report