Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

Appendices to the consolidated financial statements E.5.7

General information E.5.7.1

applied in these consolidated financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended December 31, 2019. Transaction of entities under common control In order to better reflect the economics of those transactions between entities under common control the Group has elected to account for the assets and liabilities, of acquired companies under common control, at their historical value in the IFRS consolidated account of Worldline. Difference between the purchase price and the net assets is recognized directly in retained earnings. Accounting estimates and judgments The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expense in the financial statements and disclosures of contingent assets and liabilities at the closing date. The estimates, assumptions and judgments that may result in significant adjustments to the carrying amounts of assets and liabilities are related to: Goodwill impairment tests (see Note 8); ● Revenue recognition and associated costs on long-term ● contracts (see Note 3); Capitalization of development costs (see Note 8); ● Valuation of asset acquired and liability assumed in a ● business combination (see Note 1); Convertible bond’s valuation (see Note 6). ● Subsidiaries are entities controlled directly or indirectly by the Group. The Group controls an entity when it has power over that entity, when it is exposed to variable benefits from that entity and, when due to its power over that entity, has the ability to influence the benefits that it draws from it. The existence and effect of potential voting rights that are currently exercisable or convertible, the power to appoint the majority of the members of the governing bodies and the existence of veto rights are considered when assessing whether the Group controls another entity. Subsidiaries are included in the consolidated financial statements from the date on which control is transferred to the Group. They are excluded from the consolidation from the date on which control ceases. Associates Associates are entities over which the Group has significant influence but not control or joint control, generally, but not systematically, accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for by the equity method. Consolidation methods Subsidiaries

the Worldline Group’s parent company, is a public limited company under French law whose registered office is located at 80, Quai Voltaire, 95870 Bezons, France. The Company is registered with the Registry of Commerce and Companies of Pontoise under the reference 378,901,946 RCS Pontoise. Worldline SA shares are traded on the Euronext Paris market under ISIN code FR0011981968. The shares are not listed on any other stock exchange. The Company is administrated by a Board of Directors. Worldline is a European leader and a global market player in the electronic payment and transactional services sector. Worldline activities are organized around four business lines: Merchant Services, Financial Services, Mobility & e-Transactional Services and Terminal Software Services. These consolidated financial statements were approved by the Board of Directors on February 23, 2021. The consolidated financial statements will then be submitted to the approval of the General Meeting of Shareholders scheduled to take place on May 20, 2021. Basis of preparation of consolidated financial statements Pursuant to European Regulation No. 1606/2002 of July 19, 2002, the consolidated financial statements for the twelve months ended December 31, 2020 have been prepared in accordance with the applicable international accounting standards, as endorsed by the European Union as at December 31, 2020. The international standards comprise the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), the International Accounting Standards (IAS), the interpretations of the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC). Accounting policies applied by the Group comply with those standards and interpretations. As of January 1, 2020, the Group applied the following standards, interpretations and amendments that had no material impact on the Group financial statements: Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest Rate ● Benchmark Reform; Amendments to IFRS 3 – Definition of a Business; ● Amendments to IAS 1 and IAS 8 – Definition of Material; ● Amendments to References to the conceptual framework ● in IFRS Standards. Accounting rules and policies E.5.7.2

E

Changes in accounting policies

New IFRS standards, interpretations and amendments listed above did not have any impact on the Group Financial Statement as of December 31, 2020. The accounting policies

Universal Registration Document 2020

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