RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

• foreign exchange differences on fund movements for reciprocal financing are classified under a separate heading in the consolidated cash flow table. The consolidated financial statements are denominated in euros and the financial statements are presented in thousands of euros.

and its holding company Rubis Tankmed BV, located in the Netherlands, both of which operate in US dollars. Balance sheet items are translated into euros at the exchange rate applicable on the closing date, and income statement items are translated using the average exchange rate over the reporting period. Any resulting currency translation differences are recorded as foreign exchange differences and included in consolidated shareholders’ equity. All significant transactions conducted between consolidated companies as well as internal profits are eliminated.

Foreign exchange differences arising from the elimination of transactions and transfers of funds denominated in foreign currencies between consolidated companies, are subjec t to the following accounting treatment: • foreign exchange differences arising from the elimination of internal transactions are recorded as “foreign exchange differences” in shareholders’ equity and as “non-controlling interests” for the portion attributable to third parties, thereby offsetting their impact on consolidated income;

2.2 ACCOUNTING STANDARDS APPLIED

STANDARDS, INTERPRETATIONS AND AMENDMENTS APPLICABLE AS OF JANUARY 1, 2019 The following standards, interpretations and amendments, published in the Official Journal of the European Union as of the closing date, were applied for the first time in 2019:

Date of mandatory application

Standard/Interpretation

IFRS 9 “Financial Instruments”

New standard concerning the recognition and measurement of financial instruments (hedging component)

January 1, 2019

Amendments to IFRS 9

Prepayment features with negative compensation New standards concerning the recognition of leases

January 1, 2019

IFRS 16 “Leases” January 1, 2019 IFRIC 23 “Uncertainty over Income Tax Treatments” Clarifications regarding the accounting for contingencies in respect of income taxes January 1, 2019 Amendments to IAS 19 Plan Amendment, Curtailment or Settlement January 1, 2019 Amendments to IAS 28 Long-term interests in associates and joint ventures January 1, 2019 Annual improvements (2015-2017 cycle) Annual improvements to IFRS 2015-2017 cycle (standards concerned: IFRS 3, IFRS 11, IAS 12 and IAS 23) January 1, 2019

The impac ts related to the first-time application of IFRS 16 “Leases” and IFRS 9 “Financial Instruments” are described below. The first-time application of the other standards, interpretations and amendments did not have a material impact on the Group’s financial statements. IFRS 16 – Leases The Group has applied IFRS 16 “Leases” since January 1, 2019. Previously, each lease was qualified as either a finance lease or an operating lease, with a specific accounting treatment for each category. Under IFRS 16, all leases are now recognized via the recognition of a right-of- use asset and a liability corresponding to the present value of future payments. Right-of- use assets are amortized on a straight-line basis over the non-cancellable term of the lease. Accordingly, in the income statement, tenants record a depreciation charge for the right-of-use asset and an interest expense. When leases are denominated in currencies other than the functional currency, the

revaluation of the lease liability at the closing rate generates an unrealized translation adjustment recognized in financial income. In the cash flow statement, cash flows related to financing activities now include the repayment of the lease liability and the corresponding interest expense. Transition arrangements adopted by the Group The Group elected to apply the modified retrospective transition method. This consists in recognizing the cumulative effect of the initial application as an adjustment to opening shareholders’ equity by considering that the asset represented by the right of use is equal to the amount of the lease obligations, adjusted by the amount of the rent paid, benefits received from the lessors and, where applicable, restoration costs. The discount rates applied as of the transition date are based on the Group’s incremental borrowing rate plus a spread to reflect the specific economic environments of each country. These discount rates were determined taking into account the

remaining terms of the relevant leases from the date of first-time application, i.e. January 1, 2019. The following simplification measures were applied in the transition: • leases with a remaining term of less than 12 months as of January 1, 2019 did not give rise to the recognition of an asset or liability; • contracts previously identified as leases under IAS 17 are qualified as leases. The exemption for short-term contracts was maintained after the date of first-time application. The Group applies the exemption provided for in IAS 12, under which it is permitted not to recognize deferred tax at the effective date of the lease, since the accounting entries have no effect on the income statement at that date. By contrast, deferred taxes are recognized after the effective date of the lease in respect of temporary differences between carrying amounts and tax values.

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