Euronext - 2020 Universal Registration Document

GLOSSARY, CONCORDANCE TABLES & ANNEX G

New accounting standards not yet approved by European Union Finally, the following table shows the new international accounting standards or amendments to accounting standards already in force not yet approved by the European Commission are reported.

IFRS NOT YET APPROVED AT 31.12.2020

Principle/ Interpretation

Date of publication 18/05/2017

Title

IFRS 17

Insurance Contracts

Principle/Interpretation

Changes

Date of publication

IAS 1

Presentation of Financial Statements: Classification of Liabilities as Current or Non-current

23/01/2020

IAS 1

Presentation of Financial Statements: Classification of Liabilities as Current or Non-current - Deferral of Effective Date 15/07/2020

IFRS 3 IAS 16

Business Combination

14/05/2020

Property, Plants and Equipment

14/05/2020

IAS 37

Provisions, Contingent Liabilities and Contingent Assets

25/06/2020 25/06/2020

IFRS 17

Insurance Contracts

2.6 Subsequent events to the balance sheet date In the period between the reference date of these consolidated financial statements and its approval by the Board of Directors, no events occurred that would entail a correction of the data approved. The draft consolidated financial statements were approved by the Board of Directors on 25 th March 2021 and were authorized for publication on that date (IAS 10). Business Combinations and Goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses. The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. 2.7 Summary of Significant Accounting Policies

AMENDMENT TO IFRS 16 “LEASING”: CONCESSIONS ON FEES RELATED TO THE COVID-19 PANDEMIC The Covid-19 pandemic has led in some cases to the granting by the lessors of incentives in favour of the tenants, by postponing or reducing some instalments of the contract. The IFRS 16 accounting standard requires, in the presence of contractual changes, the recalculation of the liability for rent payable using a revised discount rate in counterpart of the right of use (RoU), therefore without it detecting immediate impacts on the income statement. The IFRS Foundation approved an amendment to IFRS 16 to clarify how to account for the incentives granted following the pandemic by the lessees who prepare their financial statements using international accounting standards. This amendment, approved on 12 th October 2020, with the publication of EU Regulation 2020/1434, provides for the exemption by lessees from the obligation to assess whether the incentives relating to Covid-19 represent contractual changes to the leasing. Therefore, if the lessee makes use of this option, she must account for any change in the payments due for the lease resulting from a concession on the rent in the same way she would account for the change as if the latter did not constitute a change in the lease itself, allowing, therefore , to identify them as “variable rent” with a direct impact on the income statement to reflect changes in payments due. In order to apply this exemption, all the following conditions must be met: n the change made involves fees equal to or lower than the fees envisaged prior to the same; n the change relates only to fees to be paid until 30 th June 2021; n no further significant changes have been made to the contract. If an entity applies this practical expedient, it is required to disclose it appropriately in the financial statements. At the date of approval it is not expected any impact of the above mentioned amendments principles on the Group’s consolidated financial statements.

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2020 UNIVERSAL REGISTRATION DOCUMENT