Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

35.2

Recognised fair value measurement

35.2.1 Fair value hierarchy The table below analyses financial instrument carried at fair value, by valuation method. The different levels have been defined as follows:

n Level 1: quoted prices in active markets for identical assets or liabilities n Level 2: inputs that are based on observable market data, directly or indirectly n Level 3: unobservable inputs

Level 1

Level 2

Level 3

Total

In thousands of euros

As at 31 December 2019 Assets Financial assets at FVOCI Unlisted equity securities

-

-

197,821

197,821

Financial assets at FVPL Hedging derivatives – interest rate swaps

-

19,353

-

19,353

TOTAL ASSETS

-

19,353

197,821

217,174

Liabilities Financial liabilities at FVPL Hedging derivatives – foreign exchange forward contract – GBP

-

141

-

141

Contingent consideration payables

-

-

8,510

8,510

Redemption liability

-

-

22,165

22,165

TOTAL LIABILITIES

-

141

30,675

30,816

As at 31 December 2018 Assets Financial assets at FVOCI Unlisted equity securities

-

31,684

188,416

220,100

Financial assets at FVPL Hedging derivatives – interest rate swaps

-

7,361

-

7,361

TOTAL ASSETS

-

39,045

188,416

227,461

Liabilities Financial liabilities at FVPL Hedging derivatives – foreign exchange forward contract – GBP

-

85

-

85

Contingent consideration payables

-

-

14,186

14,186

Redemption liability

-

-

10,200

10,200

TOTAL LIABILITIES

-

85

24,386

24,471

The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period. Besides the transfer of the previously held investment of unlisted equity securities in Oslo Børs VPS out of the level 2 fair value measurement category, there were no transfers between the levels of fair value hierarchy in 2019 and 2018. The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 31 December 2019. 35.2.2 Fair value measurements using observable market data, directly or indirectly (level 2) The fair value of interest rate swaps is calculated as the present value of the estimated future net cash flows based on observable yield curves at the reporting date. The fair value of foreign exchange

forwards is calculated as the present value of future net cash flows based on the forward exchange rates at the balance sheet date. In 2018, the fair value of the investment in unlisted equity securities in Oslo Børs VPS was based on the observable purchase price of NOK 145 per share, supported by prices of Oslo Børs VPS shares traded at the end of December 2018 and beginning of 2019. In 2019, the Group made additional share purchases, increasing its ownership in Oslo Børs VPS to 8.3%, before acquiring the majority stake on 14 June 2019. Immediately before obtaining the majority stake and as part of the total purchase consideration, the equity investment was revaluated to its acquisition-date fair value at NOK 158 per share plus interest payments. Subsequently the equity investment in Oslo Børs VPS was fully derecognized on the date of acquiring the majority stake (see Note 20).

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2019 UNIVERSAL REGISTRATION DOCUMENT