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Financial Information concerning the Group’s Assets and Liabilities, Financial Condition andResults
Group Consolidated Financial Statements
179
Worldline
2016 Registration Document
Consolidationmethods
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
Associates
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
“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
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
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
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
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
Revenue recognition
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.
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
combined and treated as a single contract when the group of
contracts is negotiated as a single package, the contracts are so
Revenue is recognized separately for each of the elements
when they are separately identifiable. A set of contracts is
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 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
The Group performs regularly and in special circumstances,
profitability studies on service contracts to determine whether
Payment terminals
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
from maintenance contracts is applied, that is to say, spread
over the contract period.
Income from the rental of terminals merchants is recognized
over the term of the contract. A similar recognition of revenues
Agent
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