At 31 December 2021, the Group’s share of investment commitments given by these companies amounted to €1,362 million (€344 million at 31 December 2020). They relate mainly to projects involving infrastructure under construction at VINCI Highways, including the Vía 40 Express motorway between the cities of Bogotá and Girardot in Colombia for €241 million (€261 million in 2020).
The €1,018 million increase in 2021 relates to contract wins for three new projects: the motorway in Kenya connecting Nairobi with Mau Summit for €696 million, the D4 motorway in the Czech Republic between Prague and South Bohemia for €224 million, and the B247 federal road in Germany for €133 million.
Collateral security has been granted in the form of pledges of shares in companies accounted for under the equity method. The net carrying amount of the shares pledged at 31 December 2021 was €36 million and included shares in WVB East End Partners (the company holding the concession for the Ohio River Bridges – East End Crossing project in the United States) for €16 million, SMTPC (the holder of the concession for the Prado Carénage road tunnel in Marseille) for €10 million and Synérail (the PPP contract for the GSM-Rail system, under the Global System for Mobile Communications – Railway standard) for €10 million.
Cobra IS has entered into a €191 million corporate guarantee agreement with the banks financing four high-voltage line projects in Brazil.
The Group has made commitments to provide funding (capital and/or subordinated loans) to companies accounted for under the equity method. At 31 December 2021, those commitments amounted to €55 million (€32 million at 31 December 2020). They mainly concern the D4 motorway project in the Czech Republic (€26 million) as well as a section of the A7 motorway (€13 million) and the new B247 federal road (€11 million), both in Germany.
Consolidated revenue relating to construction and service contracts is recognised in accordance with IFRS 15.
In view of the Group’s main activities, construction and service contracts generally involve only one performance obligation, which is fulfilled as the contract is completed.
Where a contract includes several distinct performance obligations, the Group allocates the overall price provided for by the contract between the performance obligations in accordance with IFRS 15.
Where the price to which the Group considers itself entitled includes a variable component, that component is recognised where its receipt is regarded as highly probable.
Progress with construction and service contracts is measured using either the physical progress towards completion or cost-to-cost method, depending on the type of activities involved.
Contract amendments, relating in particular to the price and/or scope of the contract, are recognised when approved by the client. If amendments relate to new goods or services regarded as distinct under IFRS 15, and if the contract price increases by an amount reflecting “stand-alone selling prices” of the additional goods or services, those amendments are recognised as a distinct contract.
Where a third party (such as a subcontractor) is involved in the supply of a distinct good or service, the Group must determine whether it obtains control of that good or service before it is transferred to the client. Where control is obtained before transfer to the client, the Group recognises as revenue the gross amount to which it expects to be entitled in exchange for the corresponding good or service. However, where control is not obtained, the Group takes the view that it is not the principal in the transaction and only recognises as revenue the amount corresponding to its remuneration as intermediary.
The Group’s trade receivables represent the unconditional right to receive payment when the goods or services to be provided to the customer under the contract have been provided. In accordance with IFRS 15, the opening and closing balances of trade receivables are presented in Note H.19, “Working capital requirement and current provisions”.
Contract assets correspond to invoices not yet raised, advances paid to subcontractors or retention payments. They are included in the “Trade and other receivables” item on the asset side of the consolidated balance sheet. In accordance with IFRS 9, contract assets are analysed to assess any risk of non-recovery (“credit risk”). Contract liabilities mainly consist of advances received and prepaid income. They are included in the “Other current liabilities” item on the liabilities side of the consolidated balance sheet.
