Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

measurement of provisions for pensions • (see note 17): an actuary calculates the provision for retirement benefits using the projected unit credit method. This calculation is particularly sensitive to assumptions regarding the discount rate, salary increase rate and employee turnover rate; valuation of the stock options and free • shares granted since November 2002: the actuarial formulae used are sensitive to assumptions concerning employee turnover, changes in and volatility of the share price of Econocom group SE, as well as the probability of Management achieving itsobjectives (see note 15.3.1); assessments of the probability of • recovering the tax loss carry forwards and tax credits of the Group’s subsidiaries (see note 7 on tax loss carry forwards);

valuation of the Group’s residual interest in • leased assets: this valuation is performed using the method described in note 11.1 and verified each year using statistical methods. In addition, the Group is required to exercise critical judgment to determine: the valuation of the Group’s residual • interests in leasedassets; the qualification of dealer-lessor in sale & • lease-back contracts; the distinction between “agent” and • “principal” for revenue recognition; the derecognition of financial assets and • liabilities; identificationof an asset or group of assets • as held for sale, and discontinued operations.

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2020 annual report