QUADIENT - 2020 Universal Registration Document

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FINANCIAL STATEMENTS Quadient S.A. statements of financial position

NOTE 2

MAIN ACCOUNTING PRINCIPLES

The financial statements closed on 31 January 2021 are prepared in accordance with the measures of the French commercial code (articles L.123-12 to L.123-28), of the French accounting rules authority (ANC) regulation no. 2014-03. The following rules are applied in accordance with the prudence principle: business continuity; ● independence of financial years; ●

continuity of accounting methods from one year to ● another; and in accordance with the general rules of ● establishment and presentation of annual financial statements. The basic method for valuing accounting entries is the historical cost method. Concerning, the borrowings issue costs the Company chose to apply the spread of issue costs over the contract duration.

NOTE 3

INTANGIBLE AND TANGIBLE FIXED ASSETS

Intangible and tangible fixed assets are valued at their acquisition cost (purchase price plus related expenses). Assets are amortized on a straight-line basis according to their useful lives. The most common amortization periods are as follows:

IT implementation projects: five or seven years; ● software: five years; ● fixtures: ten years; ● office furniture and equipment: four, five or ● eight years.

Intangible fixed assets

Tangible fixed assets

Net book value at 31 January 2019

0.1

0.0

Acquisitions

-

0.2

Change in amortization and depreciation

-

-

Net book value at 31 January 2020

0.1

0.2

Acquisitions

-

-

Change in amortization and depreciation

(0.1)

-

NET BOOK VALUE AT 31 JANUARY 2021

0.0

0.2

FINANCIAL ASSETS NOTE 4

Financial assets are valued at their acquisition cost (purchase price plus related expenses) or at their contribution value. The valuation of investment in affiliates is reviewed each year. An impairment test is carried out at least once a year through the projectionof future cash flows. These cash flows are based on revenue and operating income growth assumptions over five years. The

discounting rate is the weighted average cost of capital after tax to which a specific risk premium might be added. Impairment isrecorded when the asset’s recoverable amount is lower than its carrying amount. This category includes the deposit account opened at Exane BNP Paribas for the liquidity contract, which has investments in money market funds.

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UNIVERSAL REGISTRATION DOCUMENT 2020