Sopra Steria - 2019 Universal registration document

5 2019 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

The Group classifies its financial assets into the following categories: assets at fair value through other comprehensive income; p assets at fair value through profit or loss; and p assets at amortised cost. p Classification depends on the purposes for which financial assets were acquired. According to its management model, the Group’s management determines the appropriate classification at the time of initial recognition and performs a reassessment at each interim or annual reporting date. The financial assets recognised by the Group consist of the items described below: Assets at fair value through other comprehensive income a. This category includes investments in equity instruments that the Group has chosen to irrevocably place in this category. Changes in the fair value of these assets are recognised directly in equity and are not reclassifiable to profit or loss. These assets are not impaired. The Group has included in this category its investments in unconsolidated entities over which it exercises no control or significant influence. Assets at amortised cost (loans and receivables) b. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They comprise the financial assets arising when the Group transfers funds, or provides goods and services, to an individual or entity. Loans and receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.

The Group distinguishes between: long-term loans and receivables classified as non-current p financial assets; short-term trade receivables and other equivalent receivables. p Short-term trade receivables continue to be measured at the nominal amount originally invoiced, which usually equates to These are non-derivative financial assets which the Group has chosen not to measure through other comprehensive income. This category comprises financial assets held for trading (i.e. acquired with a view to resale in the near term). They are mostly marketable securities and other cash equivalents. Changes in the fair value of assets of this category are recognised in profit or loss within Other financial income and expenses. Impairment of financial assets d. At each balance sheet date, the Group assesses whether or not there exists objective evidence that a financial asset or group of financial assets may be impaired. The Group assesses the credit risk associated with loans and receivables when they are issued. They may be subsequently impaired if the Group expects that their estimated recoverable amount is less than their net carrying amount. For trade receivables, these write-downs are charged to profit or loss as part of Operating profit on business activity and reversed in the event of an improvement in the recoverable amount. For loans and deposits, they are recorded within Other financial income and expenses. the fair value of the consideration to be received. Assets at fair value through profit or loss c.


Non-consolidated securities

Gross value


Carrying amount

(in millions of euros)

31 december 2018




Increases Decreases Revaluation




-1.6 -0.1

- - -

-1.6 -0.1

Translation adjustments and other movements



31 DECEMBER 2019




At 31 December 2019, the value of the CS Communication & Systèmes shares was €9.9 million (€9.9 million at 31 December 2018).


Other loans and receivables



(in millions of euros)




CIR and CICE tax credit receivables Other non-current receivables

12.4 10.6 15.3 -2.2 36.4


2.3 9.5

Deposits and other non-current financial assets

Provisions for loans, deposits and other non-current financial assets






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