technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1 - General information

New standards and interpretation

Effective Date Main provisions

Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) Amendment to IFRS 3 – Reference to conceptual framework

clarify that the classification of liabilities as current or non-current is based on rights that (2) are in existence at the end of the reporting period; introduce a definition of ‘settlement’ to make clear that settlement refers to the transfer (3) to the counterparty of cash, equity instruments, other assets or services.

January 1, 2023

January 1, 2022 The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. They also add to IFRS 3 a requirement that, for obligations within the scope of IAS 37, an acquirer applies IAS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. For a levy that would be within the scope of IFRIC 21 Levies, the acquirer applies IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date. Finally, the amendments add an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination.

Annual Improvements 2018-2020 Cycle

Not adopted by EU Including:

IFRS 9 – Financial Instruments: Fees in the “10 per cent” test for derecognition • of financial liabilities . The amendment clarifies which fees an entity includes when it applies the “10 per cent” test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability. An entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf; IFRS 16 – Leases - Lease incentives . • The amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example.

BASIS OF MEASUREMENT & ESTIMATES 1.2.3 The financial information has been prepared using the historical cost convention with some exceptions regarding various assets and liabilities, for which specific provisions recommended by the IFRS have been applied: non-financial assets are initially recognized at acquisition costs or • manufacturing costs including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Group’s management. Long-term assets are subsequently measured using the cost model, cost less accumulated depreciation and impairment losses; financial assets & liabilities are initially recognized at fair value or at • amortized cost (see note 8.1). The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period of

the consolidated financial statements. These assumptions and estimates inherently contain some degree of uncertainty. Management bases its estimates on historical experience and various other assumptions that are believed to be reasonable and relevant. Actual results may differ from these estimates, while different assumptions or conditions may yield different results. Management regularly reviews its valuations and estimates based on its past experience and various other factors considered reasonable and relevant for the determination of the fair estimates of the assets and liabilities’ carrying value and of the revenues and expenses. Technicolor’s management believes the following to be the critical accounting policies and related judgments and estimates used in the preparation of its consolidated financial statements: impairment of goodwill and intangible assets with indefinite useful • lives (see notes 4.1, 4.2); determination of expected useful lives of tangible and intangible • assets (see notes 4.2 & 4.3);

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020