PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Derecognised assets where there is continuing involvement

Carrying amount of continuing involvement

Financial liabilities at fair value

Fair value of continuing involvement

Amortised costs

Held to maturity

Available for sale

Maximum exposure

Continuing improvement € million

Guarantee deposit- factoring and securitisation

8

-

8

-

8

8

Other current assets Note 4.6 Other current assets are broken down as follows:

30.06.2019

30.06.2018

€ million

Advances and down payments

27

29

Tax accounts receivable, excluding income taxes

153

164

Prepaid expenses Other receivables

77 23

85

80

TOTAL

280

359

Provisions Note 4.7 In accordance with IAS 37 (Provisions, contingent liabilities and contingent assets), provisions for risks and contingencies are recognised to cover probable outflows of resources that can be estimated and that result from present obligations relating to past events. In the case where a potential obligation resulting from past events exists, but where the occurrence of the outflow of resources is not probable or where the amount cannot be reliably estimated, a contingent liability is disclosed among the Group’s commitments. The amounts provided for are measured by taking account of the most probable assumptions or using statistical methods, depending on the nature of the obligations. Provisions notably include: provisions for restructuring; — provisions for pensions and other long-termemployee benefits; — provisions for litigation (tax, legal, employee-related). — Litigation is kept under regular review, on a case-by-case basis, by the Legal Department of each affiliate or region or by the Group’s Legal Department, drawing on the help of external legal consultants in the most significant or complex cases. A provision is recorded when it becomes probable that a present obligation

arising from a past event will require an outflow of resources whose amount can be reliably estimated. The amount of the provision is the best estimate of the outflow of resources required to settle this obligation. The cost of restructuring measures is fully provisioned in the financial year, and is recognised in profit and loss under “Other operating income and expenses” when it is material and results from a Group obligation to third parties arising from a decision made by the competent corporate body that has been announced to the third parties concerned before the closing date. This cost mainly involves redundancy payments, early retirement payments, costs of notice periods not served, training costs of departing individuals and costs of site closure. Scrapping of property, plant and equipment, impairment of inventories and other assets, as well as other costs (moving costs, training of transferred individuals, etc.) directly related to the restructuring measures are also recognised in restructuring costs. The amounts provided for correspond to forecast future payments to be made in connection with restructuring plans, discounted to present value when the payment schedule is such that the effect of the time value of money is significant.

Breakdown of provisions 1. The breakdown of provisions for risks and charges in the balance sheet is as follows:

30.06.2019

30.06.2018

€ million

Non-current provisions Provisions for pensions and other long-term employee benefits

526

559

Other non-current provisions for risks and charges

448

420

Current provisions Provisions for restructuring

43

44 105

Other current provisions for risks and charges

100

TOTAL

1,117

1,128

180

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT