technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS OTHER OPERATING INFORMATION

5.1.4

OTHER CURRENT ASSETS & LIABILITIES

ESTIMATION OF ACCRUED ROYALTY INCOME In the normal course of its business, the Group may use certain technology protected by patents owned by third parties. In the majority of cases, the amount of royalties payable to these third parties for the use of this technology will be defined in a formal licensing contract. In some cases, and particularly in the early years of an emerging technology when the ownership of Intellectual Property rights may not yet be ascertained, management’s judgement is required to determine the probability of a third party asserting its rights and the likely cost of using the technology when such assertion

is probable. In making its evaluation, management considers past experience with comparable technology and/or with the particular technology owner. The royalties payable are presented within the captions “Other current liabilities” and “Other non-current liabilities” DERECOGNITION OF ASSETS A receivable is derecognized when it is sold without recourse and when it is evidenced that the Group has transferred substantially all the significant risks and rewards of ownership of the receivable and has no more continuing involvement in the transferred asset. in the Group’s balance sheet.

2019

2018

(in million euros)

Value added tax receivable

31

46

Research tax credit and subsidies

5

1

Prepaid expenses

37 111

40 177

Other

OTHER CURRENT OPERATING ASSETS

184 (41) (44) (17)

264 (44) (42) (47) (177) (310)

Taxes payable

Accrued royalties expense Payables for fixed assets

Other

(200) (301)

OTHER CURRENT OPERATING LIABILITIES

Related party transactions

5.2

A party is related to the Group if: directly or indirectly the party (i) controls, is controlled by or is • under common control with the Group, (ii) has an interest in the Group that gives it significant influence over the Group;

the party is an associate or a joint venture in which the Group is a • venture; the party or one of its Directors is a Member of the Board of • Directors or of the Executive Committee of the Group or a close Member of the family of any individual referred to above.

Related party transactions with associates & joint ventures are detailed in note 2.4. Remuneration of key management is detailed in note 9.4. In 2019 there are no related party transactions.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 226