Financial Statements 2023

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Revenue recognition (Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5 Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross Margin of the financial statements)

In particular, the amount of revenue and profit recognized in a year for performance obligations satisfied at a point in time, is dependent on the transfer of control. For performance obligations satisfied over time, this is dependent on the assessment of the stage of completion of performance obligations, as well as estimated total revenues and estimated total costs. The Company uses costs incurred as the method for determining stage of completion. Our audit procedures included, amongst others, evaluating the appropriateness of the Company’s accounting policies related to revenue recognition according to IFRS15 “Revenue from contracts with customers” and whether the accounting policies have been applied consistently or whether changes, if any, are appropriate in the circumstances. In addition, we evaluated the design and implementation and, where considered appropriate in the context of our audit of the financial statements, tested the operating effectiveness of controls related to the completeness, accuracy and timing of the revenue recognized. We selected individual revenue transactions to assess proper identification of the performance obligations in the contracts and allocation of the consideration amongst the performance obligation (such as the A400M contract and space systems contracts), the completeness and valuation of the variable considerations included in the transaction price (notably for A400M contract and space systems contracts) and the timing of transfer of control. In order to evaluate the significant judgments and estimates made by management, we read supporting contractual agreements, met with sales representatives and program teams to understand and validate the nature of the various obligations to be rendered under the contract and identify and discuss specific clauses that could prevent transfer of control (mostly for the sales of commercial aircraft), obtained evidence of transfer of control such as proof of delivery, tested the costs incurred, examined computation of costs progression and assessed the reasonableness of the estimated cost to complete included in the cost-to-come method for performance obligation recognized over time (notably for A400M development and space systems contracts). We also evaluated the potential impact of the uncertain geopolitical environment including the war in Ukraine and its related sanctions, and the Company’s assessment thereof.

Our audit approach

Finally, we determined that appropriate disclosures were made in the financial statements.

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Airbus

Financial Statements 2023