Publicis Groupe SA is a French limited liability company (société anonyme) with a Management Board and a Supervisory Board, governed by articles L. 225-57 to L. 225-93 of the French Commercial Code. The registered office is located at 133, avenue des Champs-Élysées, 75008 Paris, France.
Pursuant to Regulation (EC) 1606/2002 of July 19, 2002, the Publicis Groupe 2020 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 2020 consolidated financial statements and the accompanying notes were approved by the Management Board at its February 1, 2021 meeting and reviewed by the Supervisory Board at its February 2, 2021 meeting. They will be submitted for approval by the shareholders at the General Shareholders’ Meeting on May 26, 2021. The consolidated financial statements are presented in euros rounded to the nearest million.
The accounting principles applied to prepare the annual consolidated financial statements for the financial year ended December 31, 2020 are consistent with the IFRS standards and IFRIC interpretations as adopted by the European Union as at December 31, 2020.
The Groupe’s application of new standards and interpretations, adopted by the European Union during financial year 2020 or mandatory by December 31, 2020 at the latest, has no major impact on the Groupe’s financial statements.
As of December 31, 2020, the Groupe has not adopted any new standards or interpretations in advance.
The principles applied by the Groupe 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, 2020:
Publicis prepares and publishes its consolidated financial statements in euros.
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 Groupe obtains control until the date on which control is transferred to an entity outside the Groupe.
Control is exercised when the Groupe is exposed or entitled to the variable returns and provided that it can exercise its power to influence such returns.
The Groupe’s investments in associates are accounted for under the equity method. An associate is a company over which the Groupe 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 Groupe’s share in the net assets of the associate, in accordance with the equity method. The Groupe’s investment includes the amount of any goodwill, which is treated in accordance with the Groupe’s accounting policy in this area, as presented in Section 1.3 below. The income statement reflects the Groupe’s share of the associate’s net income after taxes for the period.
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.
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.
