technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 2 - Scope of consolidation

determination of the term of the rents for the estimation of the right of • use and of recoverable amounts for individually impaired right-of-use asset (see note 4.4); presentation in other income (expense) (see note 3.3.3); • analysis of financial restructuring impacts and fair value of new debts • and equity (see notes 7 and 8); determination of inventories net realizable value (see note 5.1.2); • deferred tax assets recognition (see note 6.2); • assessment of actuarial assumptions used to determine provisions • for employee post-employment benefits (see note 9.2); measurement of provisions and contingencies (see note 10); • determination of royalties payables (see note 5.1.4). •

the assets and liabilities are translated into euro at the rate effective • at the end of the period; the revenues and costs are translated into euro at the average • exchange rate of the period. The translation adjustments arising are directly recorded in Other Comprehensive Income. Translation of foreign currency transactions Transactions in foreign currency are translated at the exchange rate effective at the trade date. Monetary assets and liabilities in foreign currency are translated at the rate of exchange prevailing at the consolidated statement of financial position date. The differences arising on the translation of foreign currency operations are recorded in the consolidated statement of operations as a foreign exchange gain and loss. The non-monetary assets and liabilities are translated at the historical rate of exchange effective at the trade date. The main exchange rates used for translation (one unit of euro converted to each foreign currency) are summarized in the following table:

TRANSLATION 1.2.4 Translation of foreign subsidiaries

For the financial statements of all the Group’s entities for which the functional currency is different from that of the Group, the following methods are applied:

Closing rate

Average rate

2020 1.1452 0.8864 1.5320

2020 1.2271

2019 1.1206 0.8776 1.4878

2019 1.1234

U.S. Dollar (USD) Pound sterling (GBP) Canadian Dollar (CAD)

0.8990 1.5633

0.8508 1.4598

The average rate is determined by taking the average of the month-end closing rates for the year, unless such method results in a material distortion.

Scope of consolidation

NOTE 2

GRI [102-45]

Scope and consolidation method

2.1

SUBSIDIARIES

account are the actual and potential voting rights which are immediately exercisable or convertible) and when no other shareholder holds a significant right allowing veto or the blocking of ordinary financial and operating decisions made by the Group. Consolidation is also applied to special purpose entities that met the criteria of IFRS 10, whatever their legal forms are, even where the

All the entities that are controlled by the Group (including special purpose entities) i.e. in which the Group has the power to govern the financial and operating policies in order to obtain benefits from the activities, are subsidiaries of the Group and are consolidated. Control is presumed to exist when the Group directly or indirectly owns more than half of the voting rights of an entity (the voting rights taken into

Group holds no shares in their capital.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 214