SOMFY - Annual financial report 2019

07 CONSOLIDATED FINANCIAL STATEMENTS

ASSETS MEASURED AT AMORTISED COST Fixed income securities purchased with the intent of holding them until maturity are classified in this category. They are measured at amortised cost using the effective interest rate method. Amortised cost is measured by taking into account any discount received or premium paid at acquisition, over the period running from the acquisition to the maturity date. Profits and losses are recognised in the income statement when assets are derecognised or their value is impaired. The same applies to writedown charges. This category also includes deposits and guarantees and other non-current receivables, trade receivables, certain other current receivables and cash and cash equivalents not classified as assets held for trading (term deposits). They are measured at amortised cost using the effective interest rate method. Long-term loans and receivables, non-interest bearing or bearing a lower interest rate than market interest rate, are discounted if amounts are significant. Potential impairment losses are recognised in the income statement. In addition, writedown charges are established when there is an objective indication that the value of the asset may have been impaired as a result of an event arising after its initial recognition. This account primarily comprises guarantees and deposits paid to various lenders.

ASSETS MEASURED AT FAIR VALUE THROUGH ITEMS OF OTHER COMPREHENSIVE INCOME OR THROUGH THE INCOME STATEMENT Group investments in companies over which it neither has control, nor significant influence, nor joint control, are recognised as financial assets measured at fair value according to two possible accounting treatments: changes in fair value are recognised in Items of other – comprehensive income in the statement of comprehensive income, and in Other reserves in shareholders’ equity, with no possibility of transferring them to the income statement in the event of disposal. In the latter case, only dividends are recognised in the income statement; changes in fair value, as well as the disposal gain or loss are – recognised in the income statement. The choice between these two methods must be made for each investment from initial recognition and is irreversible. Assets held for trading purposes, meaning assets acquired by the company with a view to dispose of them in the short-term, are measured at fair value and fair value movements are recognised in the income statement. In particular, marketable securities complying with the definition of financial assets held for transaction purposes are measured at fair value at year-end and recognised as current financial assets. Fair value variances are recognised in the income statement.

Equity investments

Loans Deposits and guarantees

Other Current and non-current financial assets

Realisable within 1 year

Non- current financial assets

€ thousands

4,297

3,849

At 1 January 2019

1,509

286

2,499

3 – – – –

448

514

514

Increase Decrease

449

–

65

–

-2,273

1

– -2,150

-123

-2,274

995 682

995 674

Net change in impairment

– –

996 673

-1

– 8

Impact of changes in foreign exchange rates Impact of changes in consolidation scope and method Fair value recognised in items of other comprehensive income

8

–

–

–

–

–

–

–

–

–

–

–

–

–

–

479

-1,817 4,216

Other movements

–

479 285 223

–

– 3 – 3

2,295

AT 31 DECEMBER 2019

1,959 1,959

2,447 2,035

4,693 4,216

477

– –

Non-current financial assets Current financial assets

– –

477

–

62

412

Financial assets realisable within one year mainly comprise short-term deposits.

107

SOMFY – ANNUAL FINANCIAL REPORT 2019