Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Operating leases 4.1.2.2. The Group retains all the risks relating to operating leases as the significant risks and rewards incidental to ownership of the assets concerned are not transferred. Statement of financial position The leased equipment is recorded as an asset in the statement of financial position and depreciated on a straight-line basis over the duration of the contract to write it down to its residual value, which represents the Company’s residual interest in the asset at the end of the lease term. Income statement Income statement entries are made on a periodic basis with the invoiced lease

payments recorded as revenue and the depreciation described above recorded as an expense. Lease extensions 4.1.2.3. Revenue is recognised on lease extensions in line with the initial classification of the lease, i.e. : if the initial contract was classified as an • operating lease, revenue from the extension of the lease will be deferred over the period of the lease extension; if the initial contract was classified as a • finance lease, revenue from the extension of the lease will be recognised in full on the last day of the initial contract.

Personnel costs 4.2. The following table presents a breakdown of employee benefits expenses:

2019 2018 restated*

in € ڳ millions

(372.7)

(391.8)

Wages and salaries

(130.5)

(137.2)

Payroll costs

(18.2)

(16.9)

Other

Total

(521.3)

(545.8)

Following the application of IFRS ژ 5 (see 2.2.5.). *

Expenses relating to defined benefit pension plans and included in other employee benefits expense concern the Group’s subsidiaries in France, Italy, Belgium and Austria. The characteristics of these plans are set out in note ژ 17.

180

2019 annual report