Eurazeo / 2019 Universal Registration Document

Financial Statements Consolidated Financial Statements for the year ended December 31, 2019

A lease liability of €528.8 million and a right-of-use asset of €519.4 million (seeNote 6.4) wererecognized as of January 1, 2019. Account was taken at the transition date of all renewal options that were reasonably certain to be exercised. In the rare cases where they were not taken into account, the end of the lease termwas sufficiently far awaythat the inclusion of thisoption wasnot necessary.

The incrementalborrowingrate was determinedbased on market data concerning the geographic location and the asset category at the transition date. The weighted incremental borrowing rate for IFRS 16 lease liabilities is 3.46% as ofJanuary 1, 2019 – see Note 9.1.1.

The impacton the consolidated incomestatement is asfollows:

2019(12 months) with IAS 17

Applicationof IFRS 16

2019(12 months) published

Other income Cost ofsales

4,680,630

4,680,630

462,614

462,614

Taxes other than income tax Employee benefitsexpense Administrative expenses

(1,991,870)

(1,991,870)

(63,991)

(660)

(64,651)

(1,183,879) (914,928) (192,605) (8,461) (17,064) 770,446 (165,509) (163,342)

(1,183,879) (830,686) (268,417) (8,461) (17,064) 778,216 (165,509) (163,342)

Depreciation andamortization (excluding intangible assets relating to acquisitions)

84,242 (75,812)

Additionsto/(reversalsof) provisions Other operating income andexpenses

Operatingincome beforeother income andexpenses Amortizationof intangibleassetsrelatingto acquisitions

7,770

Impairment ofgoodwill/investments in associates

Other incomeandexpenses

Operatingincome

(81,981)

(81,981)

Incomeandexpensesoncashandcashequivalentsandotherfinancial instruments

359,613

7,770

367,383

Finance costs, gross Finance costs, net

(1,303)

(1,303)

(209,490) (210,793)

(17,368) (17,368)

(226,858) (228,161) (17,072) 36,522 (25,006) 133,666

Otherfinancialincomeandexpenses

Share ofincome ofassociates

(17,072) 39,086 (27,682) 143,152

Income taxexpense

(2,564)

Net income (loss)beforenet income(loss)from discontinuedoperations

2,676

Netincomefromdiscontinuedoperations,netof tax

(9,486)

Net income (loss)

(799)

(799)

142,353

(9,486)

132,867

Lease cash flows (€84.2 million) are now included in financial flows (included inoperatingflows prior toadoption of IFRS 16). A reconciliation of minimum lease payments under IAS 17 and lease liabilities is presented inNote 9.1.1.

The income and expenses of subsidiaries purchased or disposed of during the fiscal year are included in the income statement from the acquisition date orup to the disposal dateaccordingly. Equity-accountedassociates Companies in which the Group exercises significant influence on financialand businessdecisionsbut does not havemajoritycontrol, or in which it exercises joint control are accounted for in accordance with the equitymethod. Business combinations Business combinations are accounted for using the acquisition method. Accordingly,when an entity is consolidatedfor the first time, its assets, liabilities and contingentliabilities are measuredat fair value. In addition, for each business combination, the Group values any non-controlling interests in the entity acquired at fair value or based on the Group's proportional interest in the identifiable net assets of the entity acquired. Acquisition costs areexpensed inthe income statement.

Consolidation method 16.2. Fully-consolidated companies

Companies over which the Group holds a controlling interest, usually as a result of a majority stake, are fully consolidated. This rule applies regardless of the actual percentage of shares held. The concept of control represents the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Minority interests in subsidiaries are shown in the balance sheet in a separate equity category. Net income attributable to minority shareholders is clearly shownin the incomestatement.

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