Universal Registration Document 2022

Total revenue amounts to M€ 14,196M as at December 31, 2022 in the consolidated financial statements.

Service contracts between the Group’s entities and their clients include specific contractual terms. The accounting standards related to the recording of these contracts require an in-depth analysis of the contractual obligations and criteria for the transfer of promised services to the customer, particularly in case of complex contracts.

An error in the analysis of the contractual obligations to determine the transfer of promised services to the customer may lead to an error in revenue recognition.

As a result, we considered revenue recognition to be a key audit matter.

• For each type of contract, we obtained an understanding of the revenue recognition process set up by Management, from the conclusion of the agreement, through the performance of the services, the invoicing and its recording in the accounts, until the receipt of payments.
• We performed effectiveness testing of key controls over revenue processes and information systems.
• We examined the application of the accounting principles and policies relating to revenue recognition as described in the notes to the consolidated financial statements.
• We performed substantive testing of revenue recognition for a selection of contracts based on quantitative and qualitative criteria, with reference to signed contracts and other external evidence, and checked for proper cut-off.
• We reviewed the contractual documentation, the subsequent settlement and the analysis carried out by Group’s entities, in particular concerning the recoverability of trade receivables and work-in-progress.