Econocom - 2020 annual report
06 consolidated financial statements
notes to the consolidated financial statements
LIABILITIES UNDER PUT 2.1.4. AND CALL OPTIONS The Group may grant put options to non-controlling shareholders of some of its subsidiaries. The exercise price of these options is generally measured based on future performance and profitability. These options may be exercised at any time or on a specific date. The Group initially recognises a liability corresponding to the exercise price of put options granted to non-controlling share- holders of the entities concerned. The offsetting entry for this liability is deducted fromequity. The difference between the Group’s liability under put options and the book value of the non-controlling interests is recognised as a deduction from equity attributable to owners of the parent. Put options are remeasured each year; any subsequent changes in the option relating to changes in estimates or to the unwinding of the discount on the option are also recognised in equity. Changes in the liability under put options on non-controlling interests are accounted for in line with the treatment applied upon the acquisition of non- controlling interests. If the option expires without being exercised, the book value of the financial liability is reclassified to equity. ASSETS AND LIABILITIES 2.1.5. HELD FOR SALE AND DISCONTINUED OPERATIONS IFRS 5 “Non-current Assets Held for Sale and DiscontinuedOperations” requires a specific
accounting treatment and presentation of assets held for sale and discontinued operations (corresponding to operations that have been disposed of or classified as held for sale). A non-current asset or group of directly related assets and liabilities, is classified as “held for sale” if its book value will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or asset group) must be available for immediate sale in its present condition and its sale must be highly probable. Management must be committed to the sale and the sale should be expected to qualify for recognition as a completed sale within one year of the date of classification. These assets (or disposal group) are measured at the lower of their book value and estimated sale price less costs to sell. These assets cease to be amortised from the moment they qualify as “assets (or group of assets) held for sale”. They are presented on a separate line on the Group balance sheet, without restatement of previous periods. An operation discontinued, sold, or held for sale is defined as a component of an entity with cash flows that can be clearly distinguished from the rest of the entity and which represents a major, separate line of business or area of operations. For all published periods, income and expense relating to discontinued operations are presented separately in the income statement under “Profit (loss) from discontinuedoperations” and are restated in the statement of cash flows.
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2020 annual report
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