Euronext - 2020 Universal Registration Document

GLOSSARY, CONCORDANCE TABLES & ANNEX

Costs of Purchase of Good and Services These are charged to the income statement on an accruals basis and are substantiated by decreases in economic benefits, with an offsetting entry of outgoing cash flows or amortisation or depreciation of asset value or increase in liability value. Foreign Currencies The Consolidated Financial Statements are presented in Euro, which is the Parent Company’s presentation and functional currency. Foreign currency transactions are converted into the functional currency of the reporting entity using the rate ruling at the date of the transaction. Foreign exchange gains or losses resulting from the settlement of such transactions and from the translation at year end rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss, except for differences arising on pension fund assets or liabilities which are recognised in other comprehensive income. The results and financial position of all Group entities that have a functional currency different from the presentation currency are converted into the presentation currency as follows: n assets and liabilities including goodwill, purchased intangible assets and fair value adjustments are converted at the closing balance sheet rate; n income and expenses are translated at the average rate for the period; and n all resulting exchange differences are recognised in other comprehensive income as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowing and other currency instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign operation is disposed of, exchange differences that were recorded in other comprehensive income are recognised in profit or loss as part of the gain or loss on sale. Finance Income and Expense Finance income and expense comprises interest earned on cash deposited with financial counterparties and interest paid on borrowings which reflect the agreed market-based or contractual rate for each transaction undertaken during the financial period and calculated using the effective interest rate method. In conditions where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on liabilities as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group’s banks are charged to profit and loss as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised to profit or loss over the term of the facility subject to projected utilisation.

Leases Leases in which a significant portion of the risks and benefits of holding the leased asset remains of the lessee, is classified as operative leasing. Payments made in relations to operative leasing are recognized into the income statement pro rata temporis in the period of the lease’s duration. Cash Dividend The Group recognises a liability to pay a dividend when the distribution is authorised, and the distribution is no longer at the discretion of the Group companies. As per the corporate laws of Euroland, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. Current Income Tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred Tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except: n when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; n in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except; Taxes

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2020 UNIVERSAL REGISTRATION DOCUMENT