The Groupe’s financial position and earnings depend on the accounting methods applied and the assumptions, estimates and judgements made when the consolidated financial statements are prepared. The Groupe bases its estimates on its past experience and on a series of other assumptions considered reasonable under the circumstances to measure the amounts to be used for the Groupe’s assets and liabilities. Actual outcomes may, however, vary significantly from these estimates.
The characteristics of the main accounting policies, judgments and other uncertainties affecting the application of these accounting policies, together with the sensitivity of the results to changes in circumstances and assumptions associated with them are factors to be taken into consideration. The Groupe makes estimates and assumptions regarding the future. The accounting estimates will, by definition, rarely be exactly the same as the related actual outcomes. As of December 31, 2020, the assumptions used take into account the effects of the Covid-19 crisis, particularly in the preparation of five-year business plans and the estimation of doubtful debt.
The main assumptions concerning future events and other sources of uncertainty relate to the use of estimates on the reporting date, when there is a significant risk that the estimates of the net carrying amount of the assets and liabilities will be modified in future years, i.e.:
Detailed disclosures concerning these matters are provided in Notes 6, 21, 22, 29 and 31.
The main assumptions and estimates affecting the application of the accounting methods were reviewed to take into account the context of the Covid-19 crisis. The main effects are as follows:
Goodwill were tested for impairment at December 31, 2020 in addition to the test already performed at June 30, 2020. These tests led the Groupe to record an additional impairment loss on goodwill, particularly for the events business (organization of forums) in the financial statements of euro 15 million (see Note 6).
The review of indications of impairment led the Groupe to carry out tests on the amortized intangible assets linked to acquisitions, which led the Groupe to shorten the amortization period of certain client relationships (see Note 6).
In accordance with the Groupe’s accounting policies and methods, a review of trade receivables has been carried out to identify those that present a risk of non-recovery. Impairment of trade receivables has been recognized on a case-by-case basis in the annual financial statements.
In respect of the expected losses on receivables, the simplified approach permitted by IFRS 9 and applied by the Groupe has been adapted to factor in the growing risks associated with the crisis.
In line with the consequences of the Covid-19 crisis, trade receivables were written down for an additional amount of euro 14 million at December 31, 2020, recognized under other operating costs.
An analysis of the Groupe’s general funding requirements has been carried out. Taking into account the undrawn available credit lines, the Groupe has sufficient liquidity to meet its needs for the next 12 months.
It should also be noted that the had Groupe preventatively drawn euro 2 billion (USD 2.2 billion) from its revolving credit line in order to be prepared for any potential short-term impact of the global pandemic on its activities: for a three-month period beginning on March 20 for the whole line, then a second three-month period beginning on June 20 for only half of this amount, i.e. USD 1.1 billion. The amount of interest related to the drawdown of this credit line corresponds to an expense of euro 11 million over the year. As of December 31, 2020, the credit facility had been fully repaid.
