Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

By maturity

31 ژ Dec. 2019 31 ژ Dec. 2018*

in € ڳ millions

13.2

11.2

1 to 5 ژ years

0.5

4.0

Beyond 5 ژ years

Total

13.6

15.2

In accordance with the specifications of the standards, data at 31 December 2018 are not restated for the impact * of the application of IFRS 5 from 1 January 2019 (see 1.1.1.1).

Residual interest in leased 11. assets and gross liability commitments for purchases of ژ leased assets Residual interest in leased assets 11.1.

The Group’s residual interest in leased assets sold to refinancing institutions corresponds to an estimated market value. Management issues an estimate that requires critical judgement. This residual interest is calculated as follows: for all fixed-term contracts, the estimated • market value is calculated using an accelerated diminishing balance method, based on the amortisation of the original purchase cost of each item of equipment.

The residual interest therefore represents a long-term asset which is discounted using the same method as for the related lease. This method does not apply to nonstandard cases, which are rare; • contracts, the accelerated diminishing balance method of depreciation is not applicable. The estimated market value for these contracts is calculated by using a fixed percentage of the original purchase cost of the equipment. for renewable asset management

31 ژ Dec. 2019 31 ژ Dec. 2018

in € ڳ millions

Residual interest in leased assets non-current portion (between 1 and 5 ژ years)

131.9

122.4

33.0

41.4

Residual interest in leased assets current portion (less than 1 ژ year)

Total

165.0

163.8

The Group regularly revises estimates of its residual interest in leased assets using a statistical method based on its experience of second-hand markets.

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2019 annual report