RUBIS - 2019 Universal Registration Document

8 FINANCIAL STATEMENTS - 2019 Consolidated financial statements and notes

Deferred tax assets and liabilities are offset by entity or by tax consolidation group. Only the deferred tax asset or liability balance by entity or by tax consolidation group appears on the balance sheet. There is only one tax consolidation scope within the Group, that of the parent company, Rubis, which comprises

the following entities: Rubis Terminal, Vitogaz France, Rubis Énergie, Coparef, Rubis Patrimoine, Vito Corse, Frangaz, Starogaz, Sicogaz, Rubis Antilles Guyane, SIGL, Rubis Caraïbes Françaises, Rubis Guyane Française, Société Antillaise des Pétroles Rubis, Rubis Restauration et Services, Société

Réunionnaise de Produits Pétroliers (SRPP) and Cimarosa Investissements. However, in accordance with IFRS 5, the deferred tax assets and liabilities of Rubis Terminal are included in assets and liabilities held for sale.

4.7 INVENTORIES

ACCOUNTING POLICIES Inventories are valued at cost or net realizable value, whichever is lower. Inventory purchase cost is determined according to weighted average cost for Rubis Énergie and according to the First-In First-Out (FIFO) method for Rubis Terminal. Borrowing costs are not included in inventory cost. The net realizable value is the estimated sale price in the normal course of business minus estimated costs necessary to complete the sale. Impairment is recognized when the probable realizable value is lower than the net book value.

Gross value (in thousands of euros)

12/31/2019

12/31/2018

Inventories of raw materials and supplies

88,311 75,486 378,623 542,420

107,249 87,574 172,375 367,198

Inventories of finished and semi-finished products Inventories of merchandise and other goods

TOTAL

Changes in consolidation

12/31/2019

12/31/2018

Allowances

Reversals Reclassifications (1)

(in thousands of euros)

Inventories of raw materials and supplies Inventories of finished and semi-finished products

14,229

4

12,318

(13,027)

(35)

13,489

3,791 2,092

1,887

(3,791) (1,799)

1,887

Inventories of merchandise

141

(18) (53)

416

TOTAL

20,112

4

14,346

(18,617)

15,792

(1) Reclassification into group of assets held for sale (see note 3.3).

RECONCILIATION OF CHANGE IN WORKING CAPITAL WITH THE STATEMENT OF CASH FLOWS

Net carrying amount as of 12/31/2019 Net carrying amount as of 12/31/2018

526,628 347,086 (179,542)

CHANGE IN INVENTORIES AND WORK IN PROGRESS ON THE BALANCE SHEET

Impact of change in the scope of consolidation

128,407 10,809 (10,197)

Impact of reclassifications

Reclassification into group of assets held for sale (see note 3.3)

Impact of foreign exchange differences

(1,785)

CHANGE IN INVENTORIES AND WORK IN PROGRESS IN THE STATEMENT OF CASH FLOWS

(52,308)

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