Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

change in the amount of payment • expected under the residual value guarantee awarded to the lessor; adjustment of rates or indices on which • variable rents are based, when the latter are modified. Leases mainly relate to property assets and the vehicle fleet. The accounting exemptions set out in the standard for the short-term contracts (term below or equal to 12 months), and leases on low value assets, have been applied.

The rental liability is recognised at the depreciated cost, using the effective interest rate method, and leads to the recognition, on the income statement, of an interest charge for the period and variable payments (not taken into account in the initial valuation). The liability may be revalued to offset the right of use in the following cases: revision of the term of the contract; • modification linked to the valuation of the • reasonably certain nature (or not) of the exercise of a purchase option;

200 2019 annual report