Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

initiatives. These assumptions are based on past experience, market research and management expectation of market developments. For the impairment test performed as of 31 December 2019, revenues have been extrapolated using a perpetual growth rate of 2.4% (2018: 3%) after 2020. The discount rate applied was 7.5% (2018: 8.6%). The annual impairment testing of the “FX Trading” CGU performed at each year-end did not result in any instance where the carrying value of the operating segment exceeded its recoverable amount. Recoverable amount is sensitive to key assumptions. As of 31 December 2019, a reduction to 0% per year of third party revenue growth during the explicit forecast period, a reduction to 0% per year of perpetual growth rate, or an increase by 1% per year in discount rate, which management believes are individually reasonably possible changes to key assumptions, would not result in a goodwill impairment. The sensitivity test on the key assumptions defined in 2019 would not result in a goodwill impairment. Possible correlations between each of these parameters were not considered.

revenue growth during the explicit forecast period, a reduction to 0% per year of perpetual growth rate, or an increase by 1% per year in discount rate, which management believes are individually reasonably possible changes to key assumptions, would not result in a goodwill impairment. The sensitivity test on the key assumptions defined in 2019 would not result in a goodwill impairment. Possible correlations between each of these parameters were not considered. FX Trading CGU The recoverable value of the “FX Trading” CGU is based on its fair value less cost of disposal, applying a discounted cash flowapproach. The fair value measurement uses significant unobservable inputs and is therefore categorised as a Level 3 measurement under IFRS 13. Cash flow projections are derived from the 2020 budget and the business plan for 2021. Key assumptions used by management include third party revenue growth, which factors future volumes on global Foreign Exchange trading markets, the Group’s market share, average fee per transaction, and the expected impact of new product

NOTE 19 DEFERRED INCOME TAX

The analysis of deferred tax assets and deferred tax liabilities is as follows:

2019 21,025

2018 20,932

In thousands of euros

Deferred income tax assets (a)

(78,754)

(21,429)

Deferred income tax liabilities (a)

TOTAL NET DEFERRED TAX ASSETS (LIABILITIES)

(57,729)

(497)

(a) As shown in the balance sheet, after offsetting deferred tax assets and liabilities related to the same taxable entity.

2019

2018

In thousands of euros

Deferred tax assets/(liabilities): Property, plant and equipment

(2,571)

(656)

(78,419)

(17,576)

Intangible assets (a)

(16,435)

(14,133)

Investments (b)

Provisions and employee benefits

14,712

8,577

20,490

18,956

Other (c)

4,494

4,335

Loss carried forward (d)

DEFERRED TAX ASSETS (NET)

(57,729)

(497)

(a) The increase mainly relates to the recognition of a deferred tax liability resulting from the intangible assets recognized upon the acquisition of Oslo Børs VPS. (b) The increase in investments mainly relates to the increase in the revaluation of assets measured at fair value through other comprehensive income (FVOCI) (Euroclear N.V./S.A. and Sicovam Holding S.A.). (c) The line “Other” primarily relates to the impact from contract liabilities. (d) Losses carry forward mainly relate to losses carry forward recognised in Euronext US Inc.

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2019 UNIVERSAL REGISTRATION DOCUMENT