Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

Right-of-use assets & lease liabilities Note 9

Right-of-use assets under IFRS 16 9.1

and geographies of the Group and by maturity. The incremental borrowing rates were calculated by taking for each currency a reference in debt quotation by maturity (bullet rate) and adding up a spread corresponding to the entity’s cost of financing. The lease liability is re-measured when there is a change in the future lease payments arising from a change in an index or rate, a change in estimate of the amount expected to be payable under a residual value guarantee, or changes in the assessment of whether an extension option is reasonably certain to be exercised or a termination option is reasonably certain to be exercised. The Group has applied its judgment to determine the lease term for some real estate lease contracts in which it is a lessee and that include renewal or early termination options analyzing whether those sites, mainly offices, were strategic or not. In most cases, the Group retained the contractual end date. According to IFRS Interpretation Committee opinion, the Group didn’t identity major deviation between the lease term and the residual useful life of the underlying leasehold.

assets and lease liabilities are classified under three sub categories, land and buildings, IT equipments and other assets. At inception of any contract, the Group assesses whether the contract is or contains an operating lease. This evaluation may require exercising a judgment to determine the useful life considered in the valuation. The Group recognizes a right-of-use and a corresponding lease liability at the lease commencement date except for the following cases which are recorded on a straight-line basis in profit or loss over the life of the lease: Short term leases related to other assets; ● Low value assets ● The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rates. Those rates have been determined for all the currencies

Right-of-use assets break down as follows, by type of underlying asset:

Land and buildings

IT equipments

Other assets

Total

(In € million)

Gross value As at January 1, 2020

217.6 39.2 181.7

8.2 5.9 5.6 -0.1 0.0

17.7 8.4 11.2 -3.3

243.5

Additions

53.5

Impact of business combination

198.5

E

Disposals

-3.7 -0.7 -1.3

-7.1 -0.7 -1.2

Exchange differences

0.0 0.0

Other

0.1

As at December 31, 2020 Accumulated depreciation As at January 1, 2020 Depreciation charge for the year Impact of business combination

432.9

19.7

34.0

486.6

-31.0 -38.8 -105.8

-4.7 -2.2 -3.0 0.1 0.0 -0.1 -9.8

-5.6 -7.2 -4.1

-41.4 -48.2 -112.9

Disposals/Reversals Exchange differences

3.5 0.3 1.7

3.1 0.0 0.0

6.8 0.3 1.6

Other

As at December 31, 2020 Net value As at January 1, 2020 As at December 31, 2020

-170.1

-13.8

-193.7

186.6 262.8

3.5 9.8

12.1 20.2

202.1 292.8

Universal Registration Document 2020

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