RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

The age of the current assets at the closing date breaks down as follows:

Assets due unimpaired

Assets not yet due

Under 6 months 171,122

6 months to 1 year

Over 1 year 16,541

Book value

Impairment Net book value

(in thousands of euros)

Trade and other receivables

648,782 21,871 16,598 687,251

37,447

611,335 21,871 16,598 649,804

356,989 15,612 15,638 388,239

66,683

Tax receivables

2,911

322 501

3,026

Other current assets

405

54

TOTAL

37,447

174,438

67,506

19,621

4.6 DEFERRED TAX ASSETS AND LIABILITIES

ACCOUNTING POLICIES Deferred tax assets and liabilities are recognized for all temporary differences between the book value and the tax basis, using the liability method. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax losses and unused tax credits, subject to the probability of taxable profit/earnings becoming available in the foreseeable future, on which these temporary deductible differences and carry forwards of unused tax losses, and unused tax credits can be used. Deferred tax assets and liabilities are measured at the expected tax rate for the period when the asset is realized or the liability is settled, based on tax rates and laws enacted by the closing date. This measurement is updated at each balance sheet date. Deferred tax assets and liabilities are not discounted.

Deferred tax is recorded as the difference between the book value and the tax basis of assets and liabilities. Deferred tax assets and liabilities break down as follows:

12/31/2019

12/31/2018

(in thousands of euros)

Depreciation of fixed assets

(70,264)

(90,363)

Right-of-use assets and lease liabilities (IFRS 16)

2,254 2,801 8,306 5,326 4,988

Loss carryforwards

2,671 6,245 1,512 6,065 1,421 8,283 (144)

Temporary differences

Provisions for risks

Provisions for environmental costs

Financial instruments Pension commitments

951

9,802 (387)

Other

NET DEFERRED TAXES Deferred tax assets Deferred tax liabilities NET DEFERRED TAXES

(36,223) 15,778 (52,001) (36,223)

(64,311)

8,080

(72,391) (64,311)

• the difference between the consolidated value and the tax value of certain assets. With respect to French entities, deferred taxes that will probably be applied between 2019 and 2022 were measured inclusive of the gradual reductions in tax rate provided by the Finance Act of 2019. The rate differential did not have a significant impact on earnings in 2019.

Deferred taxes representing tax loss carry forwards mainly concern the tax loss carry forwards of the Frangaz, Sigalnor and Eres Sénégal entities. The deferred tax recorded on tax loss carry forwards of Frangaz concern the loss carry forwards generated before its inclusion in Rubis’ tax scope. These losses are deducted from the net profits generated by Frangaz. The business forecasts updated at year-end justify the probability of deferred tax assets being applied in the medium term.

Deferred ta xes relating to financial instruments basically comprise the deferred tax pertaining to the fair value of hedging instruments for Rubis Énergie. Deferred taxes on fixed assets mainly comprise: • the cancellation of excess tax depreciation over normal depreciation; • the standardization of depreciation rates for machinery;

242 i Rubis 2019 Universal Registration Document