Worldline - Registration Document 2016

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Financial Information concerning the Group’s Assets and Liabilities, Financial Condition andResults Group Consolidated Financial Statements

standards New or amended IFRS 9 Financial Instruments

statements Possible impact on consolidated financial statements resulting from the application of impact on its consolidated financial IFRS 9 given the nature of its activities. The Worldline Group is expecting a limited

Summary of the requirements

from IAS 39. guidance on recognition and derecognition of financial instruments general hedge accounting requirements. It also carries forward the model for calculating impairment on financial assets, and new January 1, 2018, with early adoption permitted. IFRS 9 is effective for Annual Reporting periods beginning on or after whether, how much and when revenue is recognized. It replaces IFRS 15 establishes a comprehensive framework for determining existing revenue recognition guidance, including IAS 18 Revenue, Programs. IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty IFRS 15. measurement of financial instruments, a new expected credit loss IFRS 9 includes revised guidance on the classification and IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9, published in July 2014, replaces the existing guidance in after January 1, 2018, with early adoption permitted. IFRS 15 is effective for annual reporting periods beginning on or representing its right to use the underlying asset and a lease liability model for lessees. A lessee recognises a right-of-use asset IFRS 16 introduces a single, on-balance lease sheet accounting The standard is effective for annual periods beginning on or after of Transactions Involving the Legal Form of a Lease. January 2019. Operating Leases-Incentives and SIC-27 Evaluating the Substance Determining whether an Arrangement contains a Lease, SIC 15 replaces existing leases guidance IAS 17 Leases, IFRIC 4 representing its obligation to make lease payments. IFRS 16

potential impact on its consolidated financial The Worldline Group is assessing the statements resulting from the application of

Revenue from IFRS 15 customers Contracts with

consolidated financial statements. assessment of the potential impact on its The Worldline Group has started an initial

IFRS 16 Leases

Group consolidated financial statements, are not expected to The following other standards, potentially applicable to the financial statements and are have a significant impact on Worldline Group’s consolidated Share-based Payment Clarifications; Amendment to IFRS 2 Classification and Measurement of ● Assets between an Investor and its Associate or Joint Venture; Amendments to IFRS 10 and IAS 28 Sale or Contribution of ● Amendment to IAS 7 Disclosure Initiative; and ● for Unrealized Losses. Amendment to IAS 12 Recognition of Deferred Tax Assets ● which is the Group’s functional currency. All figures are presented in € million with one decimal. These consolidated financial statements are presented in euro, The policies set out below have been applied in consistency with all years presented. significant adjustments to the carrying amounts of assets and liabilities are essentially related to: contingent assets and liabilities at the closing date. The estimates, assumptions and judgments that may result in that affect the reported amounts of assets and liabilities, income and expense in the financial statements and disclosures of The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions Accounting estimates and judgments

Goodwill impairment tests

require the use of estimates as described in Note 13 “Goodwill”. Units are determined based on value-in-use calculations or on their fair value reduced by the costs of sales. These calculations any impairment, in accordance with the accounting policies stated below. The recoverable amounts of Cash Generating The Group tests at least annually whether goodwill has suffered Revenue recognition and associated costs on long-termcontracts Revenue recognition and associated costs, including forecast losses on completion are measured according to policies stated revenue and possible forecast losses on completion that are recognized. operational assumptions such as forecast volume or variance in the delivery costs that have a direct influence on the level of below. Total projected contract costs are based on various criteria to recognize such assets requires some judgment and a technical solutions developed for its own use, for some customers or made available to a group of customers. The The Group capitalizes development costs corresponding to global overview of the amount of costs that can be capitalized. Such capitalized development costs are amortized over their estimated average life (cf. Note on accounting rules “Intangible assets other than goodwill” & Note 14 “Intangible assets”). Capitalization of development costs

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Worldline 2016 Registration Document