RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

4.1.2

RIGHT-OF-USE ASSETS (IFRS 16)

ACCOUNTING POLICIES IFRS 16 defines the right of use conveyed by a lease as an asset which represents the lessee’s right to use the underlying asset for a given period. This right-of-use asset is recognized by the Group as of the effective date of the lease (when the asset becomes available for use). The Group adopted the following exemptions under the standard: • leases with a remaining term of less than 12 months did not give rise to the recognition of an asset or liability; • leases related to low-value assets were excluded. The discount rates used to value rights of use are determined based on the Group’s incremental borrowing rate, plus a spread to reflect the specific economic environments of each country. These rates are defined according to the asset service lives. The right-of-use asset is measured at cost, which includes: • the initial amount of the lease liability; • the advance payments made to the lessor, net of any benefits received from the lessor; • the significant initial direct costs incurred by the lessee for the conclusion of the lease, i.e. the costs that would not have been incurred if the lease had not been entered into; • the estimated cost of any dismantling or restoration of the leased asset in accordance with the terms of the lease, where appropriate. The depreciation is booked on a straight-line basis over the term of the lease and is recognized as an expense in the income statement. The right-of-use asset is impaired if there is any indication of loss in value. The lease term is the non-cancellable period during which the lessee has the right to use the underlying asset, after taking into account any renewal or termination options that the lessee is reasonably certain to exercise. Fixed assets financed through finance leases (signed before January 1, 2019) are now presented as “Right-of-use assets”. The corresponding liability is now recognized as a “Lease liability”.

1/1/2019 First-time application of IFRS 16 (1)

Gross value (in thousands of euros)

Change in scope Acquisitions Decreases Reclassifications (2)

Translation differences

12/31/2019

Other property, plant and equipment

521

3 5

83

(257) (935) (364) (474)

6

358

Transportation equipment

11,753 20,150 156,759 189,183

37,129

(398)

220

47,773 19,314 144,490 211,935

Machinery, equipment and tools

79

(29)

(522)

Land and buildings

41,189 41,197

12,475 49,766

(62,951) (63,378)

(2,507) (2,803)

TOTAL

(2,030)

1/1/2019 First-time application of IFRS 16 (1)

Depreciation (in thousands of euros)

Change in scope Increases Decreases Reclassifications (2)

Translation differences

12/31/2019

Other property, plant and equipment

(192)

(181)

198 822 364

(175)

Transportation equipment

(9,109) (2,592) (17,377) (29,259) 20,507

104

(10)

(8,193) (6,312) (14,633) (29,313) 182,622

Machinery, equipment and tools

(3,982)

8

(110)

Land and buildings

(1,501) (1,501) 39,696

23

4,146 4,258

76

TOTAL

(4,174) 185,009

1,407 (623)

(44)

NET VALUE

(59,120)

(2,847)

(1) Of which reclassification of existing finance leases as of December 31, 2018 in the gross amount of €6.7 million and €4.2 million in depreciation. (2) Of which reclassification into group of assets held for sale, for a net amount of €59 million (see note 3.3).

The main changes in the scope of consolidation relate to the consolidation of the KenolKobil Group.

234 i Rubis 2019 Universal Registration Document