Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Change in the Group’s residual interest in 2019 is linked solely to the growth in business. The impact of discounting on the total amount of the residual interest was €9.6 ژ million at 31 ژ December 2019, the pre-discounted values were €174.6 million at 31 ژ December 2019. Residual interest in leased assets concerns IT assets and industrial assets amounting to ژ €151.9 million and €13.1 million, respectively (€153.0 million and €10.8 million, respectively, at end-December ژ 2018).

For more recent assets, for which there is inadequate market data to establish an accurate valuation, the Group uses a prudent approach which may be adjusted when it has access to adequate historical information. The residual interest recognised at 31 ژ December 2019 was €165 ژ million for a portfolio of leased assets representing €6.2 ژ billion (purchase price of the assets on inception of the lease). The Group’s residual interest in leased assets therefore stood at 2.7% of the purchase price of the assets in ژ its portfolio ( versus 2.7% at 31 ژ December ژ 2018).

Gross liability commitments for purchases of 11.2. leased assets The Group repurchases leased equipment the related leases. They are classified as from refinancing institutions at the end of financial liabilities not consistent the lease term. These purchase obligations throughout where you use Note or section are classified within “gross commitments or none at all. As an example look at the on residual financial value” and recognised notes under the tables earlier in this in the statement of financial position. They document but are not included in net debt are generally long-term liabilities which are (see 14.3). discounted using the same method as for

31 ژ Dec. 2019 31 ژ Dec. 2018

in € ڳ millions

Total gross liaibility commitments for purchases of leased assets – non-current portion (between 1 and 5 ژ years) Total gross liaibility commitments for purchases of leased assets – current portion (less than 1 ژ year)

81.1

73.0

20.4

25.1

Total

101.5

98.1

The present value of items recorded in impact of discounting was €7.2 ژ million in “Gross liability for purchases of leased 2019. The pre-discounted value was assets” (current and non-current portions) €108.7million at 31 ژ December 2019. stands at €101.5 ژ million. The cumulative

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2019 annual report