Pursuant to Regulation (EC) 1606/2002 of July 19, 2002, the Publicis Groupe 2019 consolidated financial statements were prepared in accordance with the IAS/IFRS international accounting standards approved by the European Union as of the reporting date and that were mandatory at that date. The 2019 consolidated financial statements and the accompanying notes were approved by the Management Board at its February 3, 2020 meeting and reviewed by the Supervisory Board at its February 5, 2020 meeting. They will be submitted for approval by the shareholders at the General Shareholders’ Meeting on May 27, 2020.
Compliance with IFRS standards as adopted by
the European Union
The accounting principles applied to prepare the annual consolidated financial statements for the financial year ended December 31, 2019 are consistent with the IFRS standards and IFRIC interpretations as adopted by the European Union as
at December 31, 2019.
Application of new standards and
interpretations
As a reminder, the Group decided to early apply IFRS 16 “Leases” and IFRIC 23 “Uncertainty over income tax treatments” from January 1, 2018.
Early application
As of December 31, 2019, the Group has not adopted any new standards or interpretations in advance.
Standards published by the IASB for which
application is not mandatory
The principles applied by the Group do not differ from IFRS standards as published by the IASB, since the application of the following standard is not mandatory in financial years beginning on or after January 1, 2019:
Reporting currency of the consolidated financial statements Publicis prepares and publishes its consolidated financial statements in euros.
Investments in subsidiaries
The consolidated financial statements include the financial statements of Publicis Groupe SA and of its subsidiaries as at December 31 of each year. Subsidiaries are consolidated as of the time that the Group obtains control until the date on
which control is transferred to an entity outside the Group. Control is exercised when the Group is exposed or entitled to the variable returns and provided that it can exercise its power to influence such returns.
Investments in associates
The Group’s investments in associates are accounted for under the equity method. An associate is a company over which the Group has significant influence but not control, this generally implies an ownership percentage of between 20% and 50% of the
voting rights. Investments in associates are recognized in the balance sheet at their acquisition cost and adjusted to reflect subsequent changes to the Group’s share in the net assets of the associate, in accordance with the equity method. The Group’s
investment includes the amount of any goodwill, which is treated in accordance with the Group’s accounting policy in this area, as presented in Section 1.3 below. The income statement reflects the Group’s share of the associate’s net income after
taxes for the period.
Joint arrangements
Partnerships recognized as joint ventures are recognized under the equity method to the extent that they only give rights to the net assets of the entity.
Foreign currency transactions
Transactions in foreign currencies are recognized at the exchange rate applicable on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate applicable at the reporting date.
All differences arising are recognized in the income statement, except for differences on loans and borrowings that, in substance, form part of the net investment in a foreign entity. These differences are recognized in equity until such time as the
net investment is disposed of, at which time they are recorded in the income statement.
Translation of financial statements prepared
in foreign currencies
The functional currency of each Group entity is the currency of the economic environment in which it operates. The financial statements of subsidiaries located outside the euro zone presented in local currencies are translated into euros, the reporting
currency of the consolidated financial statements, in the following manner:
