Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

Accounting treatment of the Ingenico acquisition Note 1 Main changes in the scope of consolidation Key Audit Matter

Our audit approach

As described in Note 1 to the consolidated financial statements, the Group acquired 100% of the Ingenico Group (“Ingenico”) shares in three steps for a total amount of € 7,638 million, as well as all outstanding Ingenico OCEANEs. Ingenico has been fully consolidated in the Group’s financial statements since November 1, 2020. As described in Note 1 to the consolidated financial statements, the transaction price was subject to a preliminary allocation to the identifiable assets acquired and the liabilities assumed as of December 31, 2020, based on an estimate of their fair value as of November 1, 2020, with information available on that date. This preliminary allocation led to the recognition of intangible assets for a n a mount of € 2,165.9 million and preliminary goodwill of € 7,949 million; the Group has one year to finalize the valuation of the assets acquired and liabilities assumed at the date of acquisition. We considered the accounting treatment of the acquisition of Ingenico as a key audit matter, considering the use of estimates and Management’s judgment, in determining the total consideration transferred and in assessing the fair value of identifiable assets and liabilities.

We have examined the assumptions and methods used by Management to determine the fair value of the equity instruments transferred, included in the total consideration transferred, as well as the fair value of the Ingenico OCEANEs acquired. Ingenico’s consolidated opening balance sheet as of November 1, 2020 was subject to specific audit procedures on the significant accounting accounts of the main subsidiaries acquired and the measurement of liabilities. Management has appointed an independent expert to assist them in the identification and valuation of the assets acquired. Our approach consisted in reviewing the preliminary report prepared by the independent expert and assessing its consistency with the business plans: We conducted interviews with the independent expert on ● the scope of the work, the valuation methodologies used, and the main assumptions used to assess the valuation of customer relationships and technologies developed, as well as the useful lives; We assessed the relevance of the valuation methods in ● relation to recognized industry practices, with the support of our own valuation specialists; We had discussions with management to corroborate the ● assumptions made in the business plans underlying the valuation of intangible assets and their useful lives. Finally, on the basis of these elements, we verified the calculation of preliminary goodwill and assessed the appropriateness of the information disclosed in respect with this acquisition in the notes to the consolidated financial statements.

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Universal Registration Document 2020

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