Worldline - Registration Document 2016

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

Consolidationmethods

incurred probably recoverable. revenue is recognized only to the extent of contract costs liabilities” for the portion of deferred revenue. When the outcome of a fixed price contract cannot be estimated reliably, balance sheet under “Trade accounts and notes receivables” for the share of proceeds to be received and under “Other current incurred, on a given date, with the expected total costs of the contract. Benefits from these contracts are recorded in the the outcome can be determined reliably. The percentage of completion is determined by comparing the cumulative costs service is performed, based on the stage of completion when platform with customers are recognized as and when the Revenues for development projects and/or migration of is recognized at the completion of the service. Income relating to other services performed on behalf of clients multiple elements, which may include a combination of different services The Group may sign in some cases service contracts with Revenue is recognized separately for each of the elements when they are separately identifiable. A set of contracts is combined and treated as a single contract when the group of contracts is negotiated as a single package, the contracts are so with an overall margin and that the contracts are performed concurrently or following one another without interruption. closely interrelated that they are, in fact, part of a single project The Group performs regularly and in special circumstances, profitability studies on service contracts to determine whether the contract will be unprofitable, a provision for loss is recorded immediately covering the loss in its entirety. the latest estimates of revenue, costs and percentage of completion need to be revised. If these estimates indicate that recognized at the time of delivery of goods in accordance with the Incoterm agreed. installation. In the event that payment terminals are only delivered to a wholesaler, the income from their sale is Revenues from the sale of payment terminals installed by the technical staff of the Company are recognized at the time of Income from the rental of terminals merchants is recognized over the term of the contract. A similar recognition of revenues from maintenance contracts is applied, that is to say, spread over the contract period. supplier. client, the responsibility for credit risk and the risk level of service and added value to services or products provided by the Factors generally considered to determine whether or not the Group acts as an agent include contractual liability towards the When the Group acts as an agent between the client and the supplier, revenue is accounted for net of suppliers’ billings. behalf credit card companies. presented net of interchange bank commissions received on The “Merchant Services & Terminals” external revenue is Payment terminals Agent

Subsidiaries

on which control is transferred to the Group. They are excluded from the consolidation from the date on which control ceases. whether the Group controls another entity. Subsidiaries are included in the consolidated financial statements from the date appoint the majority of the members of the governing bodies and the existence of veto rights are considered when assessing the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible, the power to consolidated with a shareholding of more than 50 percent of Group. Control is defined by the ability to govern the financial and operating policies generally, but not systematically, Subsidiaries are entities controlled directly or indirectly by the are accounted for by the equity method. systematically, accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates Associates are entities over which the Group has significant influence but not control or joint control, generally, but not currencies Translation of financial statements denominated in foreign are translated at closing exchange rates. Income statement items are translated based on average exchange rate for the The balance sheets of companies based outside the euro zone “Translation adjustments”. adjustments arising from a change in exchange rates are recognized as a separate component of equity under period. Balance sheet and income statement translation a foreign entity have been treated as assets and liabilities of that foreign entity and translated into euro at the closing date. Goodwill and fair value adjustments arising on the acquisition of The Group does not consolidate any entity operating in a hyperinflationary economy. Translation of transactions denominated in foreign currencies currency using the exchange rate prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from Foreign currency transactions are translated into the functional expenses”, except where hedging accounting is applied. denominated in foreign currencies are recognized in the income statement under the heading “Other financial income and the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities Services Services constitute the major part of the revenue of the Group. area of payments are recognized over the period during which the treatment has been completed. Revenues arising from transactional activities, particularly in the The proceeds from subscriptions are recognized on a straight line basis over the term of the contract. Associates Revenue recognition

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Worldline 2016 Registration Document