Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Profit (loss) from continuing 4. operations

Profit (loss) from continuing operations includes all income and expenses that arise directly from the Group’s business, both recurring items and items resulting from one-off decisions or transactions.

Recurring profit (loss) from continuing operations, representing operating profit restated for other non-recurring income and expenses, is an analytical line item intended to facilitate the understanding of the Group’s operating performance.

Income from contracts with clients 4.1. Revenue from contracts with customers by business line breaks down as follows:

2019 2018 restated*

in € ڳ millions

1,124.2

1,321.1

Technology Management & Financing

1,802.4

1,677.9

Digital Services & Solutions

Total revenue from continuing operations

2,926.6

2,999.0

In accordance with IFRS 5 (see 2.2.5), 2018 income and expenses of operations considered discontinued in 2019 are * reclassified to "Profit or loss of the discontinued operations" in the 2018 income statement. However, in accordance with the provisions of IFRS 16, which came into force on 1 January 2019, the 2018 data is not restated for the impact of this regulation on leases (see 1.1.1.1). In addition, the 2018 consolidated income statement is impacted by the recognition henceforth on the principal basis (within the meaning of IFRS 15) of direct deliveries (cf. 1.2.2.).

REVENUE RECOGNITION: 4.1.1. ACCOUNTING PRINCIPLES Revenue recognition The revenue recognition method varies depending on the nature of the performance obligations of the contract binding Group entities and their respective customers. Performance obligations are the goods or services promised in the contract. The performance obligation is the unit of account for revenue recognition: the price of the contract is allocated to each individual performance obligation, and a pattern of revenue recognition is determined for each such obligation.

Econocom recognises revenue when it has satisfied (or as it satisfies) a performance obligation by providing the customer with the promised good or service. A performance obligation is satisfied when control of the good or service is transferred to the customer. This transfer may take place at a point in time or over time. Revenue is recognised: over time when one of the following • conditions is fulfilled; the customer receives the benefits of ▶ the service as the entity performs such services, the customer obtains control of the ▶ asset as the asset is created,

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2019 annual report