Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

Profit (loss) from current 4. operating activities

Profit (loss) from current operating activities includes all income and expenses that arise directly from the Group’s business, both recurring items and items resulting from one-off decisions or transactions.

Profit (loss) from current operating activities, representing profit (loss) from operating activities restated for other non-recurring income and expenses, is an analytical line item intendedto facilitatethe understanding of the Group’s operating performance.

Income from contracts with customers 4.1. Revenue from contracts with customers by business line breaks down as follows:

2020 2019 restated*

in € millions

912.6

1,134.7

Technology Management & Financing

1,646.1

1,779.3

Digital Services & Solutions

Total revenue from continuing operations

2,558.7

2,914.0

In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020 * are reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.

REVENUE RECOGNITION: 4.1.1. ACCOUNTING PRINCIPLES Revenue recognition The revenue recognition method varies depending on the nature of the performance obligations of the contract binding Group entities and their respective customers. Performance obligations are the goods or services promised in the contract. The performance obligation is the unit of account for revenue recognition: the price of the contract is allocated to each individual performance obligation, and a pattern of revenue recognition is determined for each such obligation. Econocom recognises revenue when it has satisfied (or as it satisfies) a performance

obligation by providing the customer with the promised good or service. A performance obligation is satisfied when control of the good or service is transferred to the customer. This transfer may take place at a point in time or over time. Revenue is recognised: over time when one of the following • conditions is fulfilled: the customer receives the benefits of ▶ the service as the entity performs such services, the customer obtains control of the ▶ asset as the asset is created, the final asset has no alternative use ▶ for the entity and the entity has an enforceable right to payment for performance completed to date;

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2020 annual report