PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Financial assets Note 4.3

Financial assets consist mainly of Group interests in non-consolidated companies, loans, sureties and deposits, guarantee deposits required by the tax regulations of certain countries and plan assets for pension obligations (not entering into

or (ii) in consolidated shareholders’ equity under the heading “Other comprehensive income” and are not recycled through profit or loss. Fair value is determined on the basis of the financial criteria most appropriate to the specific situation of each company. The fair value of financial assets listed on a financial market is their stock market value. The valuation criteria generally used for other non-consolidated investments are share of equity and future

the scope of IFRS 9). Equity instruments

Investments in non-consolidated entities are recorded in the profitability. Balance sheet at fair value. Fair value results and the disposal gain or loss are recorded, in accordance with the management intention, either (i) in the income statement under the heading “Financial income/Financial expenses – other non-recurring financial items”

Loans, guarantees and deposits Loans, guarantees and deposits are valued at amortised cost.

30.06.2019

30.06.2020

Current

Non-current

Current

Non-current

€ million

Net financial assets Equity instruments

-

194

-

93

Other financial assets

-

1,096

-

273

Net loans and receivables Loans, receivables and deposits*

-

129

-

156

Total net non-current financial assets

-

1,419

-

522

Derivative instruments

6

20

12

54

FINANCIAL ASSETS 576 Following the application of IFRS 16 from 1 July 2019 (see Note 1.1.2.1), the category “Loans, receivables and deposits” includes receivables relating to subleases for * €14 million at 30 June 2020. 6 1,438 12

The table below shows the movements of financial assets, excluding derivative instruments:

Movements in the year

Translation adjustments

Other movements 30.06.2019

30.06.2018 Acquisitions Allowances Disposals

€ million

Other financial assets

765

0

0

-

(18)

349

1,097

Available-for-sale financial assets*

19

-

0

-

0

(19)

0

Equity instruments

N/A

110

-

(2)

0

94

202

Investment-related receivables

159

14

-

(9)

4

23

191

GROSS VALUES

943

124

0

(11)

(14)

447

1,489

Provisions for other financial assets

(2)

-

0

-

0

2

0

Impairment losses recognised on available- for-sale financial assets

(6)

-

-

-

0

6

-

Provisions for equity instruments

N/A

-

-

0

0

(7)

(7)

Impairment losses recognised on investment- related receivables

(49)

-

-

-

(1)

(11)

(62)

IMPAIRMENT

(57) 886

-

0 0

0

(1)

(11)

(70)

NON-CURRENT FINANCIAL ASSETS, NET 1,419 During FY19, and following the application of IFRS 9, the category “Available-for-sale financial assets” disappeared as at 1 July 2018 and a new category * “Equity instruments” was created. 124 (11) (15) 436

186

Pernod Ricard Universal Registration Document 2019-2020