Plastic Omnium - 2020 Universal Registration Document

2020 STATUTORY FINANCIAL STATEMENTS Notes to the statutory financial statements www.plasticomnium.com PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2020 274 Cash and cash equivalents These include cash, and other items with a similar nature to cash, on hand and at the bank, as well as warrants that may be redeemed at any time after they have been subscribed. Cash and cash equivalents are valued at their nominal value. Foreign currency transactions At closing, monetary items in foreign currencies are converted on the balance sheet at the exchange rates in effect at the closing date as an offset to items in “Translation differences – Assets/Liabilities” on the balance sheet, except for hedges, in which case revaluations are carried in net financial income and are offset by the impacts recognized on the hedging instrument. Unrealized foreign exchange gains are not recognized in accounting income. A provision for foreign exchange losses is recognized for the total amount of unrealized losses, except for the following situations: in the case of a hedge, the provision is recognized only for the amount ● of unhedged exposure; when unrealized gains or losses on foreign exchange relate to ● transactions in a single currency maturing in the same accounting period, the provision is limited to the excess of the losses over the gains, based on the overall foreign exchange position. Bank accounts in foreign currencies are valued on the balance sheet at the exchange rate in effect at the closing date as an offset to foreign exchange gain or losses. Financial instruments and hedging instruments The Company may at times use currency derivative to hedge the currency risk on loans granted to Group companies. Realized foreign exchange gains or losses on these derivatives are recognized in financial income to match those of the hedged items. Unrealized gains and losses on foreign exchange are recognized in financial assets and liabilities as offsets to the income statement, to show on the balance sheet their exact correspondence with the monetary items in hedged currencies. Swaps are spread in the income statement under financial income/expense over the hedging term. At December 31, 2020, the Company does not hold any derivative instrument that does not qualify as a hedge. Provisions for contingencies and charges Provisions for contingencies and charges are recognized when: the Company is bound by a legal or implicit obligation resulting from ● past events; a likely outflow of resources, without any equivalent benefit, is required ● to extinguish the obligation; the amount of the provision can be reliably measured. ● Current and non-current borrowings Debts are recognized at their nominal reimbursement value. They are not discounted. Issuance costs and redemption premiums incurred at the time of borrowing are recognized as assets and spread over the life of the bond using the compound interest rate method. Revenue Revenue is booked to profit (loss) if it is: realized, i.e. if the principle and amount are certain; and ● acquired during the year. ● Corporate income tax The Company is the parent company of the tax consolidation group that it constitutes with its subsidiaries. The subsidiaries of the tax consolidation scope contribute the amount that they would have had to pay if there was no consolidation to the Group’s tax consolidation tax expense. The additional tax savings or expense resulting from the difference between the tax owed by consolidated subsidiaries and the tax resulting from the determination of the overall profit/loss is recorded by the parent company. Non-operating items Non-operating income and expenses include exceptional items, as well as items qualified as exceptional in their nature under accounting law, primarily income from non-current asset disposals.